Together Financial Services Limited has reported further loan book growth and a rise in underlying profits for the quarter to 31 December 2025, as it continues to expand lending at relatively low LTVs.
The specialist lender said its group net loan book increased to £8.1bn, up 5.6% on the previous quarter and 1.8% on the first quarter of the financial year.
Average monthly lending reached £300.6m, an increase of 6.1% on Q2 and 11.1% on Q1, which the group attributed to sustained demand across its product range.
The business maintained what it described as a conservative approach to lending, with weighted average origination LTVs of 61.7%.
The loan book continues to be supported by a weighted average indexed LTV of 55.8%.
Arrears improved to 5.2%, down from 5.7% in the previous quarter and 5.5% in Q1.
ROBUST PROFITABILITY
Underlying profit before tax rose to £59.3m, up 6.5% on both the previous quarter and Q1. The group said the increase reflected loan book growth alongside continued cost control.
Interest receivable and similar income totalled £218.7m, broadly flat on Q1 and slightly below the £220.2m reported in Q2. Underlying net interest margin remained at 5.3%, in line with Q1 and marginally below Q2’s 5.4%.
The annualised cost of risk was 0.84%, compared with 0.83% in Q2 and 0.96% in Q1. The underlying cost-to-income ratio improved to 29.9%, from 32.2% in Q2 and 30.4% in Q1.
Cash receipts reached £952.3m during the quarter, following what the group described as a strong period for redemptions.
FUNDING AND STRATEGY
During the quarter, Together refinanced its ADALO development securitisation facility and revolving credit facility on improved terms and extended maturity. It also repriced three warehouse facilities on improved commercial terms.
The lender completed a £200m Genesis private warehouse facility for bridging and term loans in December and refinanced its Highfield warehouse facility, extending its maturity.
It also topped up BABS2, including sub-performing loans from its Senior Borrower Group.
Mike Flynn was appointed as a non-executive director in December, further strengthening the group board.
Richard Rowntree, group chief executive officer of Together, said: “We are pleased to report another strong quarter, with robust originations driving our loan book to a new high, supported by an attractive net interest margin and a continued increase in underlying profit before tax.
“We continued to execute our strategic plan at pace, advancing our transformation programme, enhancing our Board and maintaining our funding momentum, demonstrating both the strength of our platform and the confidence of our partners.
“I am equally proud that our team’s expertise and commitment were recognised through several industry awards, reflecting our focus on supporting our customers and delivering sustainable growth.
“Looking ahead, while we remain mindful of the ongoing economic headwinds facing the UK, with a successful 52-year track record and strong structural demand in our market, we are well positioned to help customers achieve their property ambitions and create long-term value for our stakeholders.”
