Yorkshire Building Society, the UK’s second-biggest mutual, plans to double its mortgage lending this year, signalling a positive outlook on the housing market.
The company, which is set to complete its acquisition of Chelsea Building Society on April 1, said its gross mortgage lending fell sharply in 2009 to £900m, from £2.5bn. The society made a pre-tax loss of £12.5m for the year to December 31, down from a profit of £8.3m in 2008, as the lender increased provisions on mortgage losses from £25m in 2008 to £59m last year.
Iain Cornish, chief executive, said its decline in mortgage lending last year reflected a more cautious approach to lending as well as low demand for house- purchase loans.
Source – Financial Times
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Justin Moy