The Hinckley & Rugby Building Society has reported a 3.7% increase in its mortgage book in 2019 and attracted an additional £45 million from savers during its financial year.

The rise in mortgages took its book to £696 million. The 3.7% increase was higher than the 2019 overall UK mortgage market growth of 3.1%.

Retail savings balances grew by 7.2% to £677 million and the Building Society paid back £16 million of Term Funding Scheme borrowing to the Bank of England.

Income from mortgage payments grew by £1.1 million to £17 million (2018 £15.9 million) and mortgage advances were £163 million (2018 £182 million), including £51 million on Buy to Let mortgages (2018 £57 million).

Net interest income was £9.1 million, at a margin of 1.11% (2018 1.18%). Profit before tax at £0.6 million (2018 £1.2 million) was impacted by banking swap rates moving lower and staying low during the year and by fair value movements on derivative financial instruments.

Colin Fyfe (pictured), the mutual’s chief executive, who joined Hinckley & Rugby in November 2018, said: “I am pleased the Society has increased its mortgage book by more than £24 million and that credit quality remains exceptional.

“The UK mortgage market in 2019 was flatter than anticipated, with consumers reluctant to make significant buying decisions. Against that backdrop, Hinckley & Rugby sought to create the right balance of lending quality, acceptable margins and appropriate volumes.

“We continue to be competitive in this market by offering a more personal service, providing more flexibility and human underwriting. The Society has also expanded the products it offers in several sectors to meet demand.

“Strengthening the Society in areas including governance, risk, compliance, finance and underwriting has laid down solid foundations for the next stages of growth.

“I served on the counters of all our branches during the year and our members were keen to tell me about the great service they receive. I’d like to thank all our 145 staff – in the branches and at head office – for their hard work and commitment to the Society’s mutual ethos of outstanding service.”

The number of borrowers in arrears on their mortgage payments by one month or more at the financial year end was 22 (2018 12), representing 0.4% of all borrowers. The UK national average is 1.39%. No properties were in possession during the year.