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Leeds Building Society aims to boost mortgage lending

Leeds Building Society is targeting a 25 per cent increase in new mortgage lending this year, as it posts a pre-tax profit of £42.2m for 2010.

The society’s profit is up 33 per cent from £31.7m in 2009.

New mortgage lending at the Leeds rose 7 per cent from £922m to £984m, with an average loan to value of 53 per cent.

The level of arrears, based on  2.5 per cent or more of outstanding mortgage balances, improved from 2.24 per cent at the end of 2009 to 2.16 per cent.

Impairment losses, the money set aside for future losses, dropped from £52.5m to £44.2m.

Savings balances grew by £245m to £7bn.

Chief executive Ian Ward says: “In 2011, we plan to increase our new lending by at least 25 per cent to around £1.25bn. This will be welcomed by home buyers as we provide more capacity and choice to the UK mortgage market.

“Leeds Building Society has again proven its ability to deliver higher levels of profitability, savings balances and new mortgage lending as well as an increase in members and very strong capital and reserves. This means that we are in an excellent position to increase new lending significantly in 2011 and continue to be a successful, independent building society throughout this year and beyond.”

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