Vida-owner Belmont Green reported that gross lending fell more than threefold to £190m last year, according to its annual report.  

New residential loans tumbled from £683m in 2022.  

The business operated with “a clear focus on writing new mortgage business with sustainable returns rather than chasing volume in what was a very competitive marketplace, gross new lending in 2023 was consciously limited,” says Belmont Green chief executive Anth Mooney in the report.  

Its report adds: “The increase in Bank of England base rate across 2022 and early 2023 resulted in higher mortgage rates, significantly impacting on affordability, which was further exacerbated by high levels of inflation increasing the cost of living for many customers.”  

UK Finance figures show that overall gross lending across the mortgage market fell 29% to £223bn last year, with remortgages 23% lower and the buy-to-let market down 50%.  

Belmont Green points out that its new digital retention platform, saw 62% of maturing customers take out a new deal with the firm, allowing it to limit redemptions to £0.2bn last year.  

This enabled it to end 2023 with net mortgage assets largely unchanged at £1.7bn.   

It also completed two residential mortgage-backed security transactions in 2023 raising £750m, with another £300m raised in January 2024.  

The firm posted a profit before tax of £6m, up from £1.4m in 2022.

The report adds: “In December 2023, UK Finance forecast a further 5% contraction in the gross mortgage market in 2024, reflecting the higher rate environment and ongoing low consumer confidence.   

“Our own view is slightly more positive, reflecting recent improving economic data and early evidence of rate reductions driving increased activity levels.   

“Anticipated interest rate reductions across 2024, and a gradual improvement in affordability and consumer confidence alongside pent-up demand is likely to limit any further reduction in house prices, with a potential for them to remain broadly flat year on year.”