Newcastle Building Society’s gross mortgage lending came to £570m in the first half of the year, a drop from £584m in the same period last year.
According to Newcastle Building Society’s latest financial statements, net residential lending, including buy to let (BTL), was £156m for the first half of the year, compared to £280m for the same period in 2024.
The firm said it “prudently slowed down mortgage growth” in the lead-up to its securitisation issuance in July 2025 to “efficiently manage liquidity and capital”, which led to a fall in net lending in the first half of the year compared to the same period last year.
Newcastle Building Society said it had helped over 1,000 first-time buyers onto the property ladder.
Total mortgage balances had increased to £5.4bn at the end of the period, up from £5.3bn at the end of 2024.
Newcastle Building Society said the percentage of mortgages in arrears of three months or more was 1.02%, a rise from 0.94% at the end of 2024.
Discover Halifax Premier
Sponsored by Halifax Intermediaries
There were 25 properties in possession in H1 2025, a rise from 13 at the end of 2024. The firm said overall properties in possession were low at a total volume of lending, adding that it was a “last resort”.
The report continued on to say that its profit before tax for the period was £10.8m, which is up from £0.2m in the same period last year.
Andrew Haigh (pictured), chief executive of Newcastle Building Society, said: “In a challenging global and political environment, these results show clear evidence of our commitment to creating value for our members as a place-based, purpose-led organisation while delivering solid performance.
“Our high street presence and a commitment to face-to-face service and accessible financial advice is clearly valued by our members, as evidenced by the growth in our high street savings balances and the number of customers we have helped access their first home.”
He added: “As a place-based, purpose-led, customer-owned business, we are increasingly aware of the role we can play in supporting our members and their communities through these often challenging and turbulent times. As always, we are grateful for the ongoing support of our members in the North East and, as the year progresses, the North West, and for the hard work of colleagues across the business in ensuring that we can continue to ‘connect our communities with a better financial future’.”
Last month, the firm unveiled an early repayment charge (ERC)-free early product transfer option.
