Challenger Virgin Money records an increase in mortgage lending

VIRGIN MONEY hailed a “strong” performance at the start of the year as it posted rising mortgage lending and better-thanexpected growth in savings deposits.

The challenger bank said it delivered £200m of net mortgage lending – loans less redemptions – in a “competitive” market during the first three months of the year.

Total mortgage lending stood at £1.4bn, with its overall mortgage book up 10.4 per cent year on year and 0.5 per cent quarter on quarter at £33.9bn.

Virgin Money said growth in retail savings was ahead of expectations as it saw overall deposits rise 7.4 per cent year on year and 1 per cent since the previous quarter to £31.1bn.

Virgin Money chief executive Jayne-Anne Gadhia said: “Our customer-focused strategy of growth, quality and returns continues to drive strong business performance.”

She added: “In addition to the strategic initiatives, we are focused on growing assets at the right price and quality in a competitive mortgage market.

“We remain on track to deliver on the targets we set at the end of last year.”

Shares lifted 3 per cent after the update.

Virgin Money, which has more than 3.3 million customers, confirmed it remained on track with full-year guidance as it ploughs ahead with a businessboosting strategy. It pushed into small business banking in January in an attempt to narrow the gap with Britain’s biggest lenders.

It launched an SME savings account and set sights on securing £5bn of SME deposits within five years.