Vernon 20pg Review 2015 5th draft_Layout 1 16/03/2016 15:59 Page 2 ANNUAL REVIEW2015 Expert writer Poynton focus Rio Games 2016 Annie Shaw is a financial Thriving branch at the Stockport wheelchair racers journalist and a Vernon heart of change in a new hope to be winning medals customer. Read her story. look village. for Team GB. Page 3 Page 6 Page 16 Great personal service, not just a number“ processed “ by a computer. Thank you for all your help. Ms W, Cheadle Hulme Mortgages in retirement Find out out how Spencer and Linda Kahan benefit. Page 4 As individual as you are Vernon 20pg Review 2015 5th draft_Layout 1 17/03/2016 09:02 Page 3 AnnualReview 2015 Welcome to our Contents 2015 Annual Review 03 Financial journalist Annie Shaw gives her view on the Vernon experience 04 We meet Spencer and Linda Kahan At this time of year we reflect as they tell us more about the background to their retirement on the last 12 months, mortgage reporting back on the financial performance of the Society. 05 Your questions answered on the Personal Savings Allowance We also get an opportunity to focus on interesting stories about our customers, the 06 Poynton branch helping to secure Vernon’s people, our products and services the future for the village and its as well as our community giving customers programme, some of which is inspired by an Olympic year. We hope you enjoy the read. 08 Key performance indicators During 2015 we have succeeded in improving levels of profitability 09-11 Summary Financial Statement with a keen eye on building for the future. Change is constant and we operate in a complex marketplace with an increasingly 12 Directors' roles and responsibilities demanding regulatory environment, all of which dictates that we need to increase investment in our people and resources to ensure 13 Directors' profiles that we take these challenges in our stride and maximise our performance. This investment in people and technology will ensure 14 Directors' Remuneration Report that today’s and tomorrow’s customers can engage with us anytime, securely and with confidence. Prudent financial management puts 15 Tackling flooded homes - the Vernon us in a good place for challenges ahead. responds with partner RSA Our aim is to meet these challenges whilst still maintaining the high 16 2016 is an exciting year for Paralympic level of personal service and expertise you expect from us today. You will see us winning on many satisfaction measures throughout this hopefuls from Stockport Wheelchair Review. Within our strong operational framework, underpinned by our Racing. Head Coach Rick Hoskins tailored, common sense approach to underwriting, we can be talks about ambitions for Rio proactive with niche, innovative products that respond to changing customer needs. Our retirement mortgage product is a great 17 Vernon Compliance Manager example of this. Jackie Beard-Jones gives the inside track on being a volunteer Technical Smaller than expected pension returns, increased longevity and having to support children for longer is a reality for many customers Official for British Swimming and one couple has shared their own experience in this Review on 18 Jubilee Fund 2015 - what we do to how our retirement mortgage product has helped. make a difference In our wider community it’s no secret that public sector services for those in need, whether through circumstance, disability or job loss, 19 Brass band meets Rock 'n' Roll are under huge pressure and our Jubilee Fund continues to back passionate groups of people who are committed to filling in the gaps. 20 Workplace loyalty – interviews with We wish all our recipients in 2015 well and admire their efforts. three of our long-serving colleagues What remains constant is the way that we seek to do things at the Vernon, going that extra mile and trying to do that little bit better for our customers every day. We appreciate your continuing support and remain committed to embracing change and driving the Society forward. Mike Hanson Chief Executive You’ll be more at home with us The Society may from time to time inform you of other products and services – you can update your marketing preferences at any time simply Head Office: by contacting us by phone, email or in writing using our details on the right. 19 St Petersgate, Stockport SK1 1HF email: [email protected] Cover image: Vernon customers Spencer and Linda Kahan www.thevernon.co.uk 02 Vernon 20pg Review 2015 5th draft_Layout 1 17/03/2016 09:03 Page 4 AnnualReview 2015 Inside track Annie Shaw is a national newspaper journalist and for several years was a financial ‘agony aunt’ for the Independent on Sunday and the Daily Express. She is co-author of the book ‘100 Ways to Beat the Credit Crunch’ and the author of the ‘Rough Guide to Family Finance’. She is a frequent expert guest on financial issues for radio and television news and writes a regular column for Saga magazine. Photo by Suki Dhanda My career in national In a world of big banks and global newspapers“ took me to London investment and “computer says no” for many years but now that I automated decisions, Vernon offers personal attention to its customers from am a freelance I am back with the local community and tailors its my roots and for the past 18 products and services to their particular months I have been enjoying the needs. 100% experience of picking up old Full marks for the patience and diligence connections in the north. of the staff in the Bramhall and Poynton Mortgage branches who have had to excavate One of the most pleasurable has been their archives to update the accounts with Family Assist re-establishing my relationship with of me and my children from two Vernon Building Society and dusting off Findings from the most recent decades ago. my ancient passbook – a really old one Lloyds Bank Family Savings study have revealed that parental with an emerald green cover embossed We are now keen active Vernon financial support for housing costs with the name of the Society in gold. customers. As well as our ordinary accounts, my son has signed up to a is up by a fifth in just two years, The building society movement was born regular savings account –with a rather with 74% of parents believing that more than two hundred years ago to more modern passbook - to save for his it will be even higher in the future. pool the resources of ordinary people own home. I am sure we will be making Parents often gift or lend a deposit and encourage the building and use of other Vernon services the more we in these circumstances, but this ownership of homes. The movement’s settle in. We have our second Vernon can be risky as they can’t rely on tradition of mutuality, balancing the calendar on our kitchen wall and look their money being returned should interests of savers and borrowers, lives on forward to a new photograph of the they need it in future. in societies such as the Vernon, with local area as each month passes. fairness at the heart of their operations. Our Family Assist Mortgage is an Unfortunately our elegant green Vernon innovative mortgage product that shopper never visits the high street as it allows a first time buyer to borrow hangs on the back of the door as my up to 100% of a property’s makeshift filing system, containing purchase price provided that a Really can’t fault incoming post that needs attention – relative is able to deposit savings Vernon. Friendly and “ pending bills and letters that need reply. equivalent to 20% of the purchase understanding of our difficult “ price for a minimum of 4 years. and complicated situation We follow the activities of the Society which no one else would Money is returned to the relative such as sponsorship and charity events spend the time over after this period provided on Twitter and are huge fans of Vernon“ payments have been maintained. Mrs C, Sheffield Bear. Thanks to Vernon for making us feel welcome now we are back home. 03 Vernon 20pg Review 2015 5th draft_Layout 1 17/03/2016 09:15 Page 5 AnnualReview 2015 We were looking“ for a mortgage that suited our circumstances“ and the Vernon’s product was just right. Spencer Kahan Mortgages in retirement Spencer Kahan, 76, and his leave a residual pension pot to wife Linda, 73, have taken full beneficiaries which continues to grow Retirement mortgages advantage of the Vernon’s and is only taxed if they withdraw funds.” retirement mortgage product. Spencer, who is semi-retired from a Spencer spoke to the Review to distinguished IFA career, is convinced ...the facts tell us why… there is a huge market for retirement Aimed to meet the unique needs of mortgage products, especially for high older borrowers that are either looking “We were looking for a mortgage that net worth individuals with income to to release equity or move home. If necessary, the amount borrowed can suited our circumstances as we went into cover monthly payments. “There is plenty be paid back from the sale of the semi-retirement and the Vernon’s of interest from financiers and regulatory property when the borrower dies or product was just right. I researched the guidance to put something in place.” moves into alternative accommodation internet, took a few soundings from the such as long term care. marketplace and became a customer.” When he is not championing retirement During the term of the mortgage the mortgage developments Spencer is a borrower is responsible for meeting the Vernon’s flexible approach caters very trustee and governor of a local monthly interest.