Specialist lender OneSavings Bank was one of the biggest risers on the FTSE 250 yesterday as high demand for buy-to-let mortgages and loans saw it post above-forecast profits.
The Kent-based challenger bank is reaping significant rewards after increasing its focus on professional landlords since the EU vote because it believes that buy-to-let investors are ‘better positioned to withstand market volatility’.
The bank hopes to win even greater business in the coming months after announcing that it will lower its standard variable rate by 0.25% from September to match the Bank of England’s cut to its base rate.
OneSavings, which specialises in buy-to-let mortgages and loans to small businesses, saw its underlying pre-tax profits increase by 36% to £64.6m in the first half of the year, helping to boost its share price by 16.9%, or 40p, to 277.3p by the close of trading yesterday.
Andy Golding, chief executive at OneSavings, said that it was too early to forecast the long-term impact of Brexit on its business, the UK housing market and wider economy.
He commented: “It is too soon to predict the medium to long-term impact of Brexit on the UK economy, but we will continue to concentrate on what we have proven we do best - using our broker relationships, manual underwriting expertise and secured lending strategy to lend responsibly to customers in underserved markets.”
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