Nervous borrowers flock to local lender

Nervous borrowers flock to local lender

A SUFFOLK-BASED building society has seen a dramatic increase in mortgage applications.

Ipswich Building Society says the numbers applying for home loans rose by a staggering 80% in July this year compared to the same period last year.

It says the increase, against a backdrop of falling applications amongst building societies overall, is even more significant given that 80% of its customers live in East Anglia.

The sharp increase has been mirrored by the society's success in attracting new savings deposits.

“The industry as a whole has continued to see higher withdrawals than receipts from accounts, whereas Ipswich Building Society's half year results for 2009 show an increase of 55% in positive net receipts, compared to the same period in 2008,” it said.

Ipswich Building Society chief executive Paul Winter put their success down to empowering staff to follow each application through.

“The current financial climate means people will be naturally nervous and as well as competitive products, they need reassurance,” he said.

“Unlike most lenders, we empower our employees so they can follow through each mortgage or new account request, giving customers the confidence of dealing with just one individual, as well as having prompt and efficient service.”

He added: “Throughout the last 18 months of turmoil in the financial markets, Ipswich Building Society has concentrated on lending to local people to buy their homes.”

Ipswich Building Society undertook brand research with 400 customers and non-customers in April this year, which showed trust and quality of service as the two most important factors in choosing a financial institution.