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Aldermore's Mortgage lending up by 24% in 2016 to £5.7 billion

POSTED: 2nd March 2017
IN: Newsroom
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  • Excellent loan originations in the Mortgages division with over £2bn lent to homebuyers, landlords, SMEs and house builders in 2016
  • Across the Mortgages division total net lending grew by 24% year on year to £5.7bn
  • Residential Mortgages – total lending +7% year on year to £1.5bn
  • SME Commercial Mortgages – total lending +12% year on year to £930m
  • Buy-to-Let – total lending +38% in 2016 to £3.3bn, driven by breadth of offering helping Aldermore to support more landlords than ever, as customer numbers increased by 25% to c20,000
  • Our Net Promoter Score increased 14 points in 2016 to +43 from +29 in 2015

Aldermore, the specialist bank, has today announced that it provided over £2bn in new mortgage lending in 2016. The disclosure comes as the Bank releases its latest full year financial results.

Aldermore’s Mortgages division offers a range of lending supporting homebuyers, landlords, SMEs and house builders. In 2016, net loan growth across the Mortgages division increased 24% year on year to £5.7bn and total customer numbers also reached an all-time high at over 30,000.

The strong Mortgages performance comes as Aldermore announces another record year of profits and growth in both lending and deposits. Underlying profit before tax increased by 34%, compared to 2015, to a record high of £133 million. At the same time, total net loans to customers increased by 22% during the year or £1.3 billion to £7.5 billion at the end of 2016. The loan growth was driven by record levels of organic origination across the Bank’s Business Finance and Mortgages divisions, which grew by 24% to £3.2bn.

Aldermore’s lending continues to be primarily funded by its award-winning deposit franchise. In 2016, total deposits increased 16% to £6.7bn, including SME deposits rising by 18% to £1.6bn.

Charles Haresnape, Group Managing Director, Mortgages, commented:

“2016 has been a fantastic year for Aldermore with growth across all our business divisions. We’ve continued supporting homeowners, landlords, SMEs and house builders. As a result our total mortgage lending grew by 24% year-on-year to £ 5.7bn.

“Our Buy-to-Let offering continues to prove popular with both individual and corporate landlords, increasing lending by more than a third (38%) year on year to £3.3 billion. We have also enhanced our propositions for first time buyers and self-employed customers and our committed approach to truly understanding the detailed needs of our customer’s enabled us to provide over £2bn in new mortgage lending in 2016.

“We are dedicated to go beyond the one-size fits all approach, employing specialist underwriters to understand each individual, offering a service that works best. Operating in carefully selected segments where we have the necessary experience and expertise to deliver strong and sustainable risk-adjusted returns through responsible lending.

“We remain committed to helping businesses and individuals to seek and seize opportunities, further enhancing our service and digital capabilities.”

Residential Mortgages

In Residential Mortgages, Aldermore’s committed approach to truly understanding its customer’s, which enabled lending to grow by 7% to £1.5bn. This growth was driven by £466m of originations which, over the year, more than offset a high level of redemptions on Help to Buy mortgages written two years ago when Aldermore was the first to market with the product.

Aldermore has continued to serve specialist segments of the residential mortgage market and invested in enhancing our propositions, including those for the self-employed and first time buyers.

SME Commercial Mortgages

In SME Commercial Mortgages, Aldermore saw a growing proportion of customers engaging directly, reflecting the growing reputation for expertise and service in underwriting multi-let investment properties. This contributed to loan growth of 12% to £930m in 2016.

Buy-to-Let Mortgages

In Buy-to-Let, the broad customer offering enabled Aldermore to grow lending by 38% to £3,326m. This strong growth also reflects operational agility, taking advantage of the market spikes in the first quarter, ahead of the introduction of an increase in stamp duty, and in the fourth quarter successfully taking a share in an active market.

*Ends*

For further information, journalists can contact:

Rachael Snelling, Aldermore
Phone:          0208 185 3102
Mobile:         07551 159 534
Email:           rachael.snelling@aldermore.co.uk

 

Notes to Editors:

Full details of the Aldermore Group PLC 2016 full year results are available here.

For further information about Aldermore, please review our Notes to Editors page

Follow us on Twitter: @AldermoreNews

 

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