OSB Group posted around £900m of new loans in the third quarter, down 31% on a year ago as the lender “maintained its lending discipline” in a “challenging” market.
It added that underlying and statutory net loans increased by 2% to £26.3bn in the nine months to the end of September, in a third-quarter stock market trading statement.
The business forecasts underlying net loan book growth of “slightly under” 3% for the year.
The group owns a range of lenders including OneSavings Bank, Kent Reliance, Precise Mortgages and Charter Court Financial Services.
It said: “Our renewed focus on commercial mortgages, bridging finance and asset finance is progressing, with an increase in applications in each of these sub-segments received in the third quarter.”
The lender added: “The group continues to evaluate customer behaviour in the reversion period throughout the fourth quarter and will assess this as part of the usual year-end process.
“The potential future impact of Precise buy-to-let customers spending less time on reversion will reduce significantly over the next two years as these mortgages reach maturity.”
In the period the business continued “to focus on cost control” and invested in the digitalisation of its core platform and customer-facing propositions.
It added it would “monitor” the effect of increased the stamp duty surcharge on second homes and investment properties to 5% from 3% introduced in Chancellor Rachel Reeves’ Budget last month.
OSB chief executive Andy Golding said: “Looking forward, while 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 BTL lending and specialist residential mortgages and continue to invest in our business to ensure it is fit for the future.”
Shares in OSB lifted 5% to 363.8p in morning trading.
