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.
Principality Building Society Grows Lending Book to £11.3bn
Principality Building Society reported a £2 million increase in its retail mortgage book, reaching £11.3 billion over the six months to June 2026. The mutual said this growth was achieved “despite a difficult trading environment.”
The number of homeowners supported by Principality rose to 89,867 during this period. The society served 3,195 first-time buyers, a decrease from 4,033 last year, which it attributed to affordability pressures in the housing market. Principality stated it remains focused on lending sustainably.
The commercial lending portfolio of Principality Building Society decreased by £16.6 million to £863.9 million compared to the end of last year. However, the mutual reported that its commercial lending pipeline is nearing £300 million and is expected to convert to growth over the coming years.
Principality agreed £73 million of new lending to housing associations, up from £15 million last year. It also provided funding to support developers in delivering 352 new homes, an increase from 55 last year.
The mutual increased its impairment charge from £300,000 last June to £5.6 million this year. This was attributed to an increase in retail mortgage and commercial lending provisions, reflecting less favourable macroeconomic forecasts, particularly lower house price growth expectations and an elevated base rate outlook.
Principality stated that its loan portfolios remain strong, citing “prudent lending criteria, credit quality and underwriting standards.” The rate of arrears across its book was 0.56%, unchanged from December and lower than the industry average of 0.91%.
Profit before tax for the mutual was £22.2 million, slightly lower than the £22.5 million reported in June last year.
Source: Mortgage Solutions