Leeds Building Society completed £2bn of gross mortgage lending during the first half of 2026, down 23.1% from £2.6bn during the corresponding period last year.

The mutual helped 13,000 borrowers onto or up the housing ladder, compared with 19,400 during the first half of 2025.

Almost half of those supported were first-time buyers, with 6,450 purchasing their first home through the Society. This was down from 9,600 a year earlier.

Leeds said its performance was in line with expectations as it entered the build phase of a multi-year programme to modernise its core technology platform.

AFFORDABILITY CRITERIA EXPANDED

The Society launched its New Start mortgage range during the period, combining high loan-to-value lending with income multiples of up to five times earnings for eligible first-time buyers.

It also expanded its Income Plus range, enabling qualifying first-time buyers and home movers earning at least £75,000 to borrow up to six times their income, subject to affordability and responsible lending assessments.

Broker satisfaction improved despite the reduction in lending volumes, with the Society’s broker Net Promoter Score rising from 63 at the end of 2025 to 65.

Savings balances increased from £26.1bn at the end of December to £26.4bn at 30 June. Leeds attracted 33,000 new savings members, compared with 55,000 during the first half of last year.

PROFIT DECLINES

Pre-tax profit fell from £104.4m to £70.7m as the Society continued investing in its transformation programme.

Its adjusted cost-to-income ratio increased to 50.6%, compared with 44% during the first half of 2025, reflecting technology investment and higher transformation expenditure.

The mutual retained £1.8bn of regulatory capital, up from £1.7bn at the end of 2025. Its Common Equity Tier 1 capital ratio stood at 24.6%, compared with 25.5% six months earlier.

Mortgage arrears remained low at 0.57%, unchanged from the end of 2025 and marginally higher than the 0.56% recorded a year earlier.

LONG-TERM INVESTMENT

Annette Barnes (main picture, inset), CEO at Leeds Building Society, said: “Our rate of growth in the first half of 2026 reflects the deliberate investment choices we have made, including the multi-year modernisation of our core technology platform, which is now in the build phase.

“We will continue to invest for the future, in line with our plan to enhance member value and set us up for continued success over the long term.

“Supporting people into homes is central to everything we do, and in the first half of 2026 we helped 13,000 people onto and up the housing ladder, almost half of whom were first-time buyers.

“I’m delighted that we continued to lend responsibly and launch innovative products to meet members’ needs.”

The Society donated £590,670 to charities during the first half through direct giving, fundraising, matched funding and volunteering incentives.