HOMEOWNERS’ ambitions to climb the property ladder and shoppers’ retail cravings have strengthened a bank’s market position.

Virgin Money has hailed record mortgage lending and strong credit card borrowing, saying the achievements have moved it closer to the sector’s established elite.

Bosses at the Newcastle-based company have also revealed higher savings demand, saying its successes put it well placed to overcome EU referendum jitters.

According to its results for the three months to March 31, gross mortgage lending increased 30 per cent to £2.1bn, compared to £1.6bn a year ago, with net mortgage lending 59 per cent better off at £1.1bn.

The company, which employs more than 2,500 staff, including well in excess of 1,000 people in Newcastle, also saw credit card balances rise 77 per cent higher to £1.8bn.

Officials say the growth gives the firm a solid platform to hit its £3bn card target by the end of 2017.

Jayne-Anne Gadhia, chief executive, said the results were very encouraging, adding the business remains resolute in its focus to tackle the big four of Barclays, Lloyds, HSBC and Royal Bank of Scotland.

She said: “(This has been) another excellent quarter and a record-breaking start to the year.

“We had a record start for mortgages and our savings franchise continues to flourish with a strong inflow of cash ISAs.

“I’m particularly pleased with the performance of the credit card business, which continues to exceed expectations, and we will continue to put customers at the heart of everything we do and look to the future with confidence.”

Ms Gadhia said its credit card division has given the business greater solidity, adding such stability will prove crucial amid market worries caused by the impending EU vote.

She added: “We are a strong, low-risk retail bank, which is unburdened by conduct legacy issues and has a strong capital base and excellent asset quality.

“We are well placed to navigate the economic uncertainty related to the lower for longer interest rate environment, the upcoming referendum and the evolving UK and European regulatory framework.

“The referendum remains the largest source of domestic uncertainty, (but), irrespective of the outcome of the referendum, we will continue to focus on growing the business by supporting customers with good value products and services.”

Speaking to The Northern Echo earlier this year, Ms Gadhia vowed Virgin, which paid the Government £747m in 2011 for the so-called ‘good bank’ element of Northern Rock, would continue to expand.

She added: “When we bought Northern Rock, it was still a loss-making business, however, we enjoyed profits of £160m last year, which was great.

“We are growing in all areas and the main thing is to never lose sight of the next opportunity in front of you.

“I’m delighted for everyone, particularly the staff at Newcastle, who have worked so hard.”