Buoyant property market boosts Suffolk Building Society profits

The building society – which changed its name from Ipswich Building Society during this period – recorded pre-tax profits of £2.9 million for the year ending November 30, 2021, down from £1.9 million pounds the previous year.

These increased profits were driven by an 8% growth in the company’s mortgage portfolio, which stood at £615m at the end of the year, up from £568m the previous year. Suffolk BS saw £175m in mortgages in the 12 month period, up from £123m the year before.

The construction company said the growth was significantly ahead of its lending plans and was driven by the stamp duty waiver, record interest rates and the ‘space race’ in response to terms more hybrid workplaces in the wake of the pandemic.

The Suffolk Building Society said it had also benefited from targeting niche mortgage markets and building intermediary relationships through renewed investment in its business development team. In this fiscal year, the Company reported that 94% of its completed mortgage business was through mortgage intermediaries.

During the year, the Company expanded its product offering with a return to 90% of Loan To Value (LTV) mortgages and the reintroduction of co-ownership.

This is in addition to £22m in self-build loans and the increase in maximum loan size to £1m for 80% LTV products.

In its 2021 financial year, the Company processed 1,159 applications, resulting in 818 completions for the year with an average loan size of £214,000. The company also saw growth of £23.5 million in its retail savings business.

Suffolk Building Society chairman Alan Harris said: “We have had another year of strong mortgage performance, which has indeed been helped by the buoyancy of the property market.

“Looking ahead, intermediaries will be delighted to know that we have high expectations for our new mortgage origination platform to be launched later this year. This will give us flexibility on product features and enable us to react even more quickly to changes in the market – which, with the possibility of further interest rate hikes on the horizon, will further contribute to increasing our operational efficiency. .