Skipton Group increased its mortgage balances to £33.3bn in 2025, with a record 50% of new lending supporting first-time-buyers, as it reported lower headline profits but maintained strong capital ratios.
The mutual group, which comprises Skipton Building Society and property services arm Connells, posted statutory profit before tax of £275.2m for the year to 31 December 2025, down from £318.6m in 2024.
Underlying profit before tax was £294.9m, compared with £302.3m a year earlier.
Group mortgage balances rose 7.9% to £33.3bn, slightly below the 8.2% growth recorded in 2024, in what the business described as a ‘stop-start’ housing market.
Half of all new mortgage lending was advanced to first-time-buyers, up from 44% in 2024, with more than 26,000 helped into home ownership during the year.
The results come against a backdrop of stretched affordability and tighter regulatory constraints, with Skipton continuing to position itself as an active participant in policy debates around loan-to-income caps, capital requirements and savings reform.
MORTGAGE GROWTH AND CAPITAL STRENGTH
Skipton Building Society delivered profit before tax of £189.3m, down from £209.9m in 2024. The group said net interest margin remained resilient, although earnings were affected by the partial redemption of PIBS, higher investment spend across people, brand and technology, and an increase in loan impairment charges.
Capital ratios remained strong, with a CET1 ratio of 28.2% and a leverage ratio of 6.7%, broadly in line with the previous year. The society’s savings balances increased 7.8% to £30.5bn, surpassing £30bn for the first time.
Stuart Haire, group chief executive, said: “We are pleased with our performance, whilst remaining focused on what matters most as a mutual: supporting our members and investing for the long term.
“We helped over 26,000 first-time buyers, achieving a milestone we originally set for 2028. We helped people save for their life ahead through providing 0.68% above market average interest rate to our members; and provided over 64,000 free financial advice conversations to our members.
“Our diversified Group model and mutual status mean we can invest for the long term, creating real value for members and society for now and for years to come.
“With housing affordability at its lowest point in 17 years, Skipton’s role has never been more critical in helping address the challenges our members and customers face.
“We will keep innovating, from our Track Record Mortgage to our Home Affordability Index, and influencing policy to make homeownership more achievable.”
CONNELLS AND BROADER GROUP PERFORMANCE
Connells reported profit before tax of £73.1m, up from £61.3m in 2024, and paid £55m in dividends to the society. The estate agency and mortgage brokerage arm arranged 9% more mortgages year on year and completed 7% more surveys and valuations.
Connells facilitated 86,000 property exchanges during 2025, compared with 79,000 the previous year, and grew its lettings portfolio to more than 128,000 properties under management. The group said Connells generated £33.3bn of lending for UK mortgage providers during the year.
Elsewhere in the group, Skipton Business Finance recorded profit in excess of £11m and advanced more than £200m to clients, while Skipton International and Jade both invested in systems and expansion initiatives.
Membership of the society rose 4% to more than 1.32 million, with £195.7m of value returned to members through pricing and benefits. The society maintained a net customer satisfaction score of 90%.
