Yorkshire Building Society increased mortgage lending in the first half of 2026, although a sharp rise in impairment charges contributed to lower profits.
Gross mortgage lending rose to £4.6 billion during the six months, from £4.3 billion in the same period last year. The society completed 19,300 new residential mortgages, compared with 18,000, while mortgage balances increased by 0.8% from the end of 2025 to £52.3 billion.
More than a quarter of the new loans went to first-time buyers. Yorkshire provided 5,600 mortgages to first-time buyers, up from 4,500 during the first half of last year.
The mutual said its continuing efforts to help more people into home ownership had contributed to a modest increase in lending risk. This, combined with a more cautious economic outlook, resulted in a £23.7 million impairment charge on financial assets, compared with £2 million a year earlier.
Yorkshire said its mortgage portfolio nevertheless remained resilient, with low levels of default. The group reported statutory profit before tax of £181.9 million, down from £187.9 million in the corresponding period of 2025.
Core operating profit fell more sharply, from £215.4 million to £175 million. The society said it had continued to invest in its capabilities while providing members with above-market savings rates.
Savings balances increased by 0.9% from the end of last year to £54.5 billion. Yorkshire opened 288,000 savings accounts during the half, the same number as a year earlier, and paid savers an average rate of 3.34%, against 3.66% in 2025.
The average rate was 0.54 percentage points above the wider market, with the society estimating that its members received an additional £115.4 million of interest during five months.
Susan Allen (pictured), chief executive of Yorkshire Building Society, said: “We have delivered a solid first-half performance, growing both savings and mortgage balances while continuing to invest in the products and services our members value.
“Against a backdrop of economic volatility and heightened competition, our results demonstrate the strength of our mutual model and the trust millions of customers place in us.”
The lender responded to regulatory changes by allowing first-time buyers to borrow as much as 5.5 times their income. It also removed its minimum income requirement, resulting in nearly 1,800 mortgage offers during the half to applicants who would not have qualified under its previous criteria.
Allen said: “We remain committed to supporting and removing barriers to home ownership, particularly for first-time buyers. For example, we reacted quickly to regulatory changes to allow first-time buyers to borrow up to 5.5 times their income.
“We also removed the minimum income requirement, and this has meant in the first half of the year we’ve made nearly 1,800 mortgage offers to customers who would not have met the previous criteria.”
The society’s Common Equity Tier 1 capital ratio rose to 19.2%, from 18.8% at the end of 2025. Its liquidity coverage ratio increased from 238.7% to 243.3%, with both measures remaining significantly above regulatory requirements.
As a mutual without external shareholders, Yorkshire reinvests its profits in the business and in products and services for members. The society said its first-half performance would allow it to continue investing while pursuing sustainable growth.
