Coventry Building Society is the latest lender to launch a set of positive results with a sharp rise in new mortgage business, in a further boost to market confidence.
Coventry announced "record results" for the six months to June 2013, including a 16% rise in new mortgage lending to £2.9 billion, up from £2.5 billion in the same period last year. This continues the recent run of good results by mortgage lenders.
Mortgage balances increased by £1.2 billion, with the Society claiming it accounts for 25% of mortgage growth in the UK since the start of 2010. Coventry has also claimed a growing share of the savings market, increasing balances by £821 million to £20.9 billion.
Coventry said its mortgage growth is in contrast to the market as a whole, where the "major lenders collectively have reported a significant contraction in mortgage lending" since the Funding for Lending Scheme was launched last year.
In the first nine months of the scheme, Bank of England data shows that the largest participating lenders cut lending by more than £8.6 billion, against a £1.6 billion rise by Coventry.
Chief executive David Stewart said: "Coventry has maintained its track record of strong performance which was established before the onset of the current financial crisis in late 2007.
"We have retained our ‘A’ rating from the two main credit rating agencies that rate the building society sector, and have developed a sustainable business that has the fair treatment of customers at its heart.
"Coventry continues to demonstrate that building societies can thrive in the toughest of environments."
Profits before tax rose 18% to £62.2 million. It also has a healthy Core tier 1 ratio of 22.5%.
Bank of Ireland fared less well, however, with its British UK division announcing a £97 million loss in the first six months of 2013.
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