Profits for the Bank to 15 May were £6m compared with £2.1m for the same period last year. Gross mortgage lending for the period was £2.0bn, an increase of 23% compared to the first six months of 2003. As a result, mortgages under management stood at £9.3bn, up £0.6bn from the year-end.
Peter Joshi, finance director, commenting on the results said:
“I’m delighted to announce Standard Life Bank’s strong start to 2004. These figures show the Bank has maintained its momentum after breaking into profit last year, and underline our determination to build on the platform we have established. We thank all our introducers who have supported the Bank and look forward to developing even stronger relationships with these key partners.”
The buy-to-let mortgage book has expanded and comprised 3.4% of total mortgages under management at 15 May, compared to 1.5% at the same period last year. For the industry as a whole, buy-to-let accounts for 5% of total mortgages in the UK*.
*Council of Mortgage Lenders figures to 31/12/03
At the beginning of the financial year, Standard Life Bank entered the equity release market with the launch of its Freestyle Lifetime Mortgage. This product has been designed to be flexible over the long term and is backed by a thorough sales process to ensure customers are well aware of potential risks. Following the HM Treasury announcement that home reversion schemes are to be regulated, the Company is also very pleased that the reputation of the whole equity release market will be enhanced.
