'We've survived countless economic cycles – we can double in size'

As the new CEO of Vernon Building Society, Darren Ditchburn (pictured) has ambitious plans to double its size and and reach the £1bn mark within the next 10 years, while increasing its high street presence. 

It’s a tall order, particularly in the current economy, but Ditchburn isn’t intimidated by the somewhat precarious nature of the UK’s current financial health. The Vernon has impressive longevity, having recently marked its centenary, and, while the CEO suggests that doubling in size is a challenging, but realistic aim, he draws strength from its resilience over the years.

But, for all his optimism, why does Ditchburn think he can buck the trend of other businesses which are struggling for survival in the current market, not least those which are withdrawing from the high street and going online?

“The Vernon has just celebrated its 100th year, a milestone that reflects our ability to adapt and thrive through countless economic cycles,” Ditchburn told Mortgage Introducer. “Over the last decade alone, we've nearly doubled in size despite facing major headwinds like Brexit, the COVID-19 pandemic, and the ongoing cost-of-living crisis. These challenges only reinforced the vital role we play in helping people achieve home ownership and build financial resilience through savings.”  He added: “Our long-term strategy, coupled with a commitment to responsible, member-focused growth, gives us confidence that the next 10 years can be just as successful as the last. At the heart of our approach is a business model built on mutuality and the redistribution of value, not just in terms of financial returns like higher profits, competitive savings rates, or mortgage offerings, but in more broader ways. As we scale, we’re not simply chasing growth for growth’s sake. The aim is to create greater capacity to reinvest in the things that matter most to our members and our communities.”

For some, the future of financial services is digital - as AI tightens its grip on modern life, a virtual and online presence, rather than bricks and mortar in a town centre, seems inevitable. The pandemic certainly boosted remote business. But Ditchburn is seemingly confident about taking a different path, seeing physical branches as a compelling part of the Vernon’s proposition, particularly in terms of its community engagement. The Stockport-based lender plans to have a location in every borough of Greater Manchester by 2030.

“While many lenders are retreating from the high street, we see it as an opportunity to do the opposite, because we know how much our members and local communities value face-to-face service,” he said. “Our branches are not just transactional spaces; they are engagement hubs at the heart of our communities. They offer visibility, trust, and a human connection that can’t be replicated online, particularly when it comes to important life decisions like saving for the future or buying a home. Customer choice matters.”

Not that Ditchburn is anti-technology  – in his view the two can co-exist. “We believe in a blended approach, combining digital convenience with in-person support,” he said. “Growth allows us to enhance our digital capabilities, ensuring our members have access to modern, seamless services while also safeguarding the importance of face-to-face, high-street access for those who value personal interaction. It also strengthens our ability to give back, whether that’s through community partnerships, financial education initiatives, or local support schemes. The larger we become, the more we can do, and the more impact we can have where it truly counts.”  

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How is Vernon Building Society performing?

For the first time in Vernon Building Society’s 100-year history, its total assets have exceeded £500m, growing by 10% to £506m, while profit before tax increased to £3.5m. Gross mortgage lending grew from £76.4m in 2023 to £89.6m in 2024 - in part due, it says, to the work the Vernon has done to help underserved markets and give more people the chance to become homeowners. It is committed to offering mortgages in what Ditchburn describes as ‘complex and unusual situations’ - borrowers with non-standard financial circumstances who may not meet the typical criteria of mainstream lenders.

“This includes individuals with irregular or multiple income sources, such as the self-employed, contractors, or professionals with varied earnings, as well as those borrowing in retirement or undertaking unique projects like self-builds,” he said. “These situations require a more personalised approach to lending, rather than a one-size-fits-all approach. We’ve worked closely with brokers to help borrowers with complex income streams or unusual financial situations. By collaborating, we ensure home ownership is possible, even when it isn’t straightforward.” Ditchburn added: “Mortgage brokers are central to our success, they’re not just partners but an extension of what we stand for, sharing our commitment to helping people achieve their home ownership dreams. Under my leadership, we want to go even further building stronger partnerships with mortgage brokers. That means investing in better technology, clearer communication, and being easy to do business with. It also means listening to broker feedback and evolving our proposition to meet the needs of the market, together.”

Ditchburn believes the mortgage market has shown real resilience over recent years, despite significant challenges and he remains optimistic about its future. “There are some encouraging signs - low unemployment, steady wage growth, easing inflation, and a relatively stable housing market,” he noted. “Added to that is growing confidence in the potential for interest rates to fall and a renewed commitment to building more homes, all of which support a more positive outlook. But we also have to stay grounded. The external environment remains very uncertain and can change quickly. Geopolitical tensions, the risk of trade disruptions, and increasing tax pressures, both personal and business, create real headwinds. And for building societies, in particular, any negative changes to products like the Cash ISA feel counterintuitive. These are important tools that help people save, especially when trying to get on the property ladder. When every penny counts, we should be making it easier, not harder, for people to build up a deposit. So, while there are reasons to be optimistic, we remain cautious and focused on navigating the uncertainty ahead.”

Ditchburn started his career in 2004 at Darlington Building Society, where he spent 18 years. He then served as Deputy CEO at Leek Building Society, before moving to the Vernon. So what, then, would be the best business lesson he’s learned?

“If I had to pick just one lesson that’s stuck with me, it would be never walk past poor standards or performance,” he reflected. “It might sound simple, but it’s something I’ve really held onto over the years. When you let the little things slide, whether that’s in how we treat each other, how we serve our members, or how we show up day-to-day, it can slowly chip away at the culture and quality you’re trying to build. I’ve found that taking the time to address things early, and in the right way, creates a healthier, more respectful environment. People feel more supported, and it sets the expectation that we all care about doing our best, not just for ourselves, but for each other and the people we serve.”