Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Leeds Building Society Reports Drop in Gross Lending for H1 2026

Leeds Building Society reported gross mortgage lending of £2bn in the first half of 2026, down from £2.6bn in the same period last year. The mutual also supported 13,000 people onto or up the housing ladder during the period, a decrease from 19,400 a year earlier.

Annette Barnes, CEO of Leeds Building Society, described the results as “solid” and stated that the decline in lending was in line with the society’s long-term growth plans. Of the 13,000 borrowers supported in the first half of 2026, 6,450 were first-time buyers, making up almost half of all homebuyers assisted by the mutual.

Barnes noted that the current housing market is turbulent, with discretionary buyers more likely to delay purchases, while needs-based movers—such as families requiring more space—continue to buy. She emphasised that the housing market has not stalled, but buyers are being cautious due to external factors.

New Mortgage Products and Affordability Initiatives

During the reporting period, Leeds Building Society launched its New Start mortgage range, aimed at helping first-time buyers overcome affordability barriers through high loan-to-value lending and loans of up to five times income. The society also expanded its Income Plus proposition, allowing eligible borrowers earning at least £75,000 to access loans of up to six times income, subject to affordability checks. The mutual stated that its affordability criteria remain rigorous, with a focus on responsible lending.

Loan Impairments and Mortgage Book Quality

Impairment charges on loans increased to £7.3m from £2.2m a year earlier, reflecting higher provisions for potential future credit losses. However, the quality of the mortgage book remained stable, with arrears unchanged at 0.57% compared to the end of 2025 and broadly in line with the same period last year. The mutual said this stability reflected ongoing support for borrowers experiencing financial difficulty.

Leeds Building Society stated that supporting people into homeownership remains central to its strategy, despite ongoing economic uncertainty.