Skipton Building Society revealed today that it has reduced its mortgage lending, but that it continues to offer help to borrowers and “good value” to savers.

Commenting on the group’s half year results, which show pre-tax profits for the first six months of 2009 at £17million, compared to the £22.5million for the whole of 2008, group chief executive, David Cutter said:
“In order to preserve liquidity and capital, we have prudently restricted our lending compared to previous years, by adjusting our criteria according to market conditions.”

However, Mr Cutter adds that the building society has been doing what it can to help those struggling with mortgage repayments: “We have balanced this with continuing to help our members and their families to meet their home ownership aspirations, within reason, and doing our utmost to help struggling borrowers by working with them to find appropriate, personalised solutions.”

The building society has also been doing what it can for savers who have been hit by low interest rates, Mr Cutter adds: “Steps designed to kick-start the economy, such as the Bank of England’s reduction of its Base Rate to a 315-year low of 0.5 per cent have compressed margins and penalised savers who rely on income from their investments.

“We have continued to offer consistently good value, as evidenced by the fact our wide variety of savings accounts – from easy access products to ISAs and fixed rate bonds – have made regular appearances in independent newspaper ‘Best Buy’ tables.”

And, the financial crisis will continue to make Skipton stronger, Mr Cutter adds: “By continuing to do all we can to cater for and support our savers and borrowers, and seizing appropriate business opportunities which will emerge from the current recessionary environment, we will ensure the long term financial strength and success of Skipton.”

© Fair Investment Company Ltd