West Brom sticks to traditional values
The West Bromwich Building Society, which celebrates its 170th anniversary this year, is sticking to the traditional principles on which it was founded in protecting its existing members and helping people who really need a home.
The West Brom's new mortgage lending fell from £837m to £691m in the year to the end of March due to increased competition from other lenders offering unrealistically low re-payments.
Chief executive Jonathan Westhoff said: "Volume is not as important to us. Our purpose is to look after our savers and borrowers as equally as we can."
Mr Westhoff said that ring-fenced major high street banks had a massive surplus of cash to lend and the most obvious place to use that was in the mortgage market.
"They are lending almost just to get money in," he explained.
He said that matching the low margins those banks were taking would be unfair on the society's existing borrowers and savers.
"We made a conscious decision not to go with uneconomic margins.
"We are focused on making sure we can give as much as we can to our savers," he said.
Following the increase in the bank rate in August last year the society increase the level of interest it paid above the national average.
First time buyers made up 43 per cent of the society's new mortgage borrowers in 2018-2019 compared to 34 per cent in the previous year.
The society opened its latest branch in its home town in New Square during the year.
It replaced two old and small branches in West Bromwich and means the society now has 36 branches across the West Midlands
"It has been very well received by our members. We have been waiting years for the right opportunity in the town centre. We have effectively merged the old branches to create a flagship branch for West Bromwich.
"We are still investing in our branches. Since 2010 we have refreshed every single branch and are now putting in new technology into the branches."
Mr Westhoff said the West Brom was now looking at encouraging the young generation of its members to save through its educational programme.
"We are focused on our home area on this and have already delivered the message to 2,000 students about the value of saving.
"We are working hard to keep future generations with the West Brom," he added.
As part of the 170th anniversary of serving the community in West Bromwich and the wider West Midlands, the society, which has 425,000 members, is running a monthly loyalty draw for its existing customers over six months in which they can win £1,000.
