A MUTUAL has refused to rule out creating new jobs after strong mortgage demand helped push profits higher.

Newcastle Building Society says it stands well placed to expand following a year of growth.

The company, which last year created the UK’s first library-based mutual in Yarm, near Stockton, saw both mortgage lending and profits rise in 2016, despite a competitive landscape.

Bosses said the firm’s range of products, allied to its commitment to offer customers a personal service, meant it retained its trusted place in the marketplace and gave scope to create 118 jobs.

However, Andrew Haigh, chief executive, told The Northern Echo that the company wasn’t finished yet, highlighting a previously announced £10m investment programme as the catalyst for further successes.

He said: “We had a really positive 2016; we started the year with our agenda to grow and we are pleased to see it come through.

“We are not just about one channel, it’s about a mix and we want to build more relationships across the region.

“We see the branches as a really important part of what we do and as we go through the year, our programme of refurbishment and renovation will continue.”

A key driver in the building society’s growth was mortgage lending, with its gross figure increasing 46 per cent to £496m after it helped more than 700 first-time buyers.

The business, like many other borrowers, has benefited from continued demand from buyers as the Government’s Help to Buy scheme drives interest in new properties. Mr Haigh said: “At the end of the day, we are here to help people buy their homes.

“It is very competitive, but we have seen good growth in first-time buyers and are keen to support people on the property ladder.”

Mr Haigh also said the firm, which saw pre-tax profits rise 50 per cent to £8.1m, couldn’t rule out creating more jobs to complement the 118 it delivered in 2016.

He also revealed its Yarm move, which represented a return to the town for the business, has gone very well.

He added: “We expect to do a similar number (of jobs) this year with investment right across the business.

“We’ve been absolutely thrilled with Yarm, it has been really well received.

“We’ve had new customers coming in and existing customers using the library building too.

“We have got something that is really making a positive impact on Yarm high street.”

Mr Haigh added the business’ Strategic Solutions division, which provides savings management services, had played a larger part in the company’s progress, while its charitable arm had made grants to the value of £18,000 available for community projects across the region.