A MUTUAL could open more branches after strong mortgage demand galvanised its progress.

Newcastle Building Society says an impending expansion into Yarm Library may provide the catalyst for similar ventures.

Bosses say the endeavour, delivered alongside Stockton Borough Council, will create the UK’s first library-based mutual branch when it opens later this year.

The company revealed the vision after announcing half-year financial results, which showed gross residential lending, up from £148m a year ago to £255m, had helped propel pre-tax profits to £3.5m.

The latter figure was more than double the £1.5m achieved in the same period a year ago.

Andrew Haigh, chief executive, told The Northern Echo the business was in a good position, saying its 150-year commitment to delivering trusted services and advice was allaying Brexit fears.

He also said its Yarm move, which should see the society move back to the town in September, was proof the business has confidence moving forward.

He said: “We are really excited about Yarm, we think it’s a good partnership with the council and it is bringing us back to Yarm high street.

“We have been so pleased with the response when we have spoken to people; they are really enthusiastic about it.

“We hope people take advantage of it and hope we might be able to open more branches like that elsewhere.

“We hope it’s a model we can replicate.

“Local relationships are really important to us and our members; having branches and people coming in and having conversations with us is a really important part of what we do.”

The business is part way through a £10m programme to improve its branch network, create 100 jobs and bolster telephone and digital operations.

It has already filled more than 50 posts across areas such as mortgages, IT and HR, opened a branch in Gateshead, refurbished a site in North Shields, North Tyneside, and set up two Newcastle-based financial advice centres.

Mr Haigh said the plans show the company is safeguarding its future, adding it has yet to feel any material impact from the EU referendum vote.

Earlier this week, Newcastle-based lender Virgin Money said its residential mortgage book had provided a platform to grow amid any Brexit uncertainty, and Mr Haigh said his mutual’s progress was of a similar vein.

He added: “We are very pleased and we are doing what a good building society does.

“We are focused on supporting people, helping them save, helping them buy their own home and giving them financial advice.

“We have had some volatility with Brexit, but for us it is about being that constant organisation that people have grown to depend on.

“It is a relationship we have built with members for generations.

“There may well be an impact but we are in a strong position and are focused on getting the right service for people so they have somewhere to go that they understand and trust.

“We are well placed to deal with the road ahead.”

The company has branches across the region, including bases in Darlington, Durham City, Middlesbrough and Stokesley, North Yorkshire.