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OSB reports gradual market recovery amid growth in applications

6th Nov 2024 11:02

(Alliance News) - OSB Group PLC on Wednesday reported a "gradual return" to market confidence, following an increase in applications during its third-quarter.

The Chatham, England-based mortgage lender said it maintained its lending discipline in the third quarter that ended September 30, with organic originations falling 31% to GBP900 million from GBP1.3 billion last year.

Meanwhile, the company's "renewed focus" on its Commercial Mortgages, Bridging Finance and Asset Finance divisions resulted in an increase in applications within each subsection during the quarter.

Net loans in the nine months that ended September 30 rose 1.9% to GBP26.3 billion from GBP25.8 billion the year before.

Underlying cost to income ratio remains at about 36% for 2024, compared to around 33% last year.

Chief Executive Officer Andy Golding said: "Looking forward, whilst challenges remain, there are signs of a gradual return of confidence in our core markets, and we are seeing increased applications in our more cyclical businesses. The potential impact on the future plans of professional landlords due to the increase in stamp duty on second properties introduced following the recent budget is being monitored. We have a diversified loan book with proven capabilities in multi-property professional buy-to-let lending and specialist residential mortgages and continue to invest in our business to ensure it is fit for the future."

Shares in OSB were up 6.8% at 369.80 pence each in London on Wednesday morning.

By Emily Parsons, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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