It continues to focus on supporting first-time buyers
Skipton Building Society has reported robust financial results for the first half of 2024, with significant contributions from its Home Finance division.
The mutual, part of the broader Skipton Group, saw a marked increase in new lending to first-time buyers, who made up over 40% of its new customers during this period, up from 31% in June 2023.
Mortgage balances grew by 10.8% year-on-year, reaching £30.1 billion. The society also reported an increase in the number of properties under its management, with 127,090 homes on its books as of June 2024, compared to 125,025 a year earlier.
Skipton maintained its market share, saying it handled approximately one in 10 of all UK home purchases and sales.
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“These are a strong set of results, and it’s particularly encouraging to see 41% of all our new lending going to first-time buyers,” said Charlotte Harrison (pictured), chief executive of home financing at Skipton Building Society, which recently launched a new range of first-time buyer products, including a suite of mortgages and £1,500 cashback options.
Harrison also pointed to the recent launch of the Skipton Group Home Affordability Index, which underscores the challenges facing first-time buyers in the UK. She emphasised the need for continued innovation in product offerings to address these issues, noting the importance of collaborative efforts across the housing sector.
The Home Finance division’s performance contributed to a 5% year-on-year increase in group profit before tax, which rose to £157 million. This was driven by an uptick in housing market activity, with Skipton’s estate agency arm, Connells Group, reporting a 12% increase in total revenue to £508 million. However, the group also faced downward pressure on net interest income.
Harrison highlighted the success of products like Skipton’s Income Booster and the Track Record 100% mortgage, which have been pivotal in assisting first-time buyers. Since its launch in May 2023, the Track Record mortgage has generated over £108 million in applications, according to Skipton.
In addition, Skipton’s Lifetime ISA (LISA) product has supported over 90,000 first-time buyers in securing their homes, with £560 million in government bonuses provided to LISA members since its inception.
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