Strong year for The Tipton with record mortgage lending

The Tipton achieved mortgage book growth of 11.3 per cent, with gross mortgage lending reaching £116 million in 2023 from £108m a year earlier – the highest level ever achieved.

Total assets as at the year-end stood at £603m, up from £540m in 2022 – an increase of over 11 per cent and the third successive year of double digit asset growth.

Rising interest rates supported another strong profit performance with pre-tax profit of £4.3m ­— £500,000 down on 2022.

As a mutual organisation profit is used to reinforce the aociety’s strong capital position and to support future investment and mortgage lending rather than paying dividends to shareholders.

The net interest margin increased to 2.46 per cent even after paying better rates to savers and protecting variable rate mortgage customers from the full rise in base rate. Savings members have benefitted from savings rates 1.32 percentage points above market average rates over the year.

The Tipton’s approach resulted in the society attracting £51m in new savings balances from both existing and new members. For borrowers on variable rate mortgages the Tipton has again been measured in its approach to increasing its standard variable rate during the year, restricting increases to 1.6 per cent compared to a 1.75 per cent increase in bank rate.

During the year the society supported the local community by making charitable donations of £47,705, including £9,000 to the Midlands Air Ambulance and £12,000 to the Black Country Foodbank, and pledging a further £12,000 to the Foodbank in 2024.

Adam Evetts, the Tipton’s chief executive, said: “2023 was another incredibly successful year for the society despite the economic and market conditions, and we remain focused on our principle purpose of helping members to own a home at all stages of life, and to help them save for the future.

" Our record levels of mortgage lending and strong savings inflows demonstrate our belief that offering customers fairly priced products and great customer service pays off. I’m looking forward to developing these areas further, with us embarking on a number of significant projects in 2024, and seeing the society grow from strength to strength as a regional building society.

"Our success during 2023 would also not have been possible without the support and commitment of all our colleagues and members, and our important relationships with mortgage brokers. My thanks go to everyone involved; they’ve played a vital role in our successful year.

"As a society, we are financially strong and well positioned to respond to any economic uncertainty and will continue to take opportunities as they arise..

The society has its head office and main branch in Owen Street, Tipton, and branches in Coseley, Bilston and Sedgley.