It reports continued lending success
Saffron Building Society has reported a £53 million increase in mortgage lending in 2021, following a record year in 2020.
The building society said the record profitability was the result of increased lending and a return to pre-pandemic margins bolstered by a strong post-pandemic recovery strategy.
“To say I am delighted to have added another £243 million of new mortgage origination – putting new members into their first, new, or remain in their current home – would be an understatement,” Colin Field, chief executive at Saffron Building Society, said.
While lending has decreased slightly against the record year of 2020, the 2021 figures remain one of the best years on record for the mutual.
“Although we celebrated a record year of lending in 2020, the economic impact on the society from reduced interest rates significantly impacted our bottom line,” Field said.
He added that the 2021 financial year wasn’t without challenges for lenders, borrowers, and savers, noting that there are still many hurdles to navigate in the current economic climate in the year ahead.
“While we celebrate the success in our annual report, my colleagues and I are consciously aware of the challenges the UK faces in the current economic climate. Inflation continues to rise; the Bank of England is trying to mitigate the impact – something we have seen in the recent interest rate increases – but the whole of society will feel it,” Field pointed out.
“However, I am confident that Saffron will continue to adapt to the challenges that arise. We will focus on lessening the financial impact on our members and assisting as many people as we can to understand, manage, and improve their financial well-being and promote money happiness,” he said.
