18 March 2009
Saffron Building Society comments on FSA Mortgage Arrears figures
As the FSA publishes mortgage arrears data, Saffron Building Society re-affirms its commitment to help its mortgage borrowers with repayment difficulties.
At the end of 2008, the percentage of Saffron's total mortgage balances in arrears was 0.28% (a significant decrease from 0.62% at the end of 2007). This figure is not only a fraction of the average industry wide figure of 2.72%, but also far lower than the average 0.80% of building society mortgages in arrears.
Andy Golding, Saffron Building Society chief executive, said "Saffron's low figure for outstanding mortgage payments in arrears demonstrates our dedication in this area. Saffron is committed to helping its members and if they find themselves in financial difficultly as a result of the current economic climate, then we'll be there to help them. As a local building society, our members feel they can trust us and so we can work with them to help them manage their mortgage repayments. We treat each member individually to arrive at a mutually satisfactory arrangement that fits their particular circumstances.
"Following a good set of 2008 results and a good start to the year we are positive about the future. We are also planning to launch some very attractive new mortgage deals over the year to put some more much needed funding into the housing market".
Saffron opted to take the £1.1M three-year cost for bailing out failed banks in one lump sum and has increased its mortgage provisions by £1.4m to anticipate a rise in the number of borrowers defaulting on their repayments. This further shows Saffron's readiness to help its members with their mortgage repayments and a desire to ensure that future profitability remains strong.
In 2008, Saffron acquired 1,415 new mortgage customers and ended 2008 with 8,153 mortgage customers (an increase of 415 on 2007).
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