First-time buyer mortgage demand buoys Yorkshire Building Society

The mutual said it gave mortgages to a record 9,931 first-time buyers in the six months to June 30.

Henry Saker-Clark
Thursday 29 July 2021 02:15 EDT
The building society saw profits rise as it was buoyed by a leap in mortgage demand (Yorkshire Building Society/PA)
The building society saw profits rise as it was buoyed by a leap in mortgage demand (Yorkshire Building Society/PA) (PA Media)

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Yorkshire Building Society has more than doubled its profits for the past six months after demand for mortgages from first-time buyers rocketed.

The mutual said it gave mortgages to a record 9,931 first-time buyers in the six months to June 30, around three times the number from the same period in 2020.

Yorkshire Building Society said the jump in demand helped to drive profits higher.

It posted a pre-tax profit of £147.7 million for the past half year, compared with a £67.3 million profit in the same period last year.

The group said the number of residential mortgages it provided over the period rose by almost a third to 41,750.

It came as house prices jumped and sale demand lifted ahead of the deadline for the stamp duty holiday for some properties at the end of June.

Yorkshire Building Society added that total mortgage balances also made gains, rising by £2.2 billion to £41 billion at the end of June.

Mike Regnier, chief executive of the building society, said: “Despite the uncertain external environment, I’m pleased to report that Yorkshire Building Society has made a strong start to the year.

“The housing and mortgage markets have been strong in the first six months of 2021 and remain positive as we enter the economic recovery period.

“This has enabled us to end the first half of the year with good profit levels and strong capital and liquidity positions.”

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