Hinckley & Rugby Building Society more than doubled the value of mortgages it issued last year as part of a push to increase its share of the home loan market.

The society, which is based in Hinckley, granted £77 million worth of mortgages in the year to November 30, up from £35million in the previous 12 months, new figures show.

Mortgage applications soared by 87 per cent to £90 million over the same period, reflecting renewed interest in the housing market.

Chief executive Chris White said the society hoped to increase lending by another 30 per cent to £100 million this year.

However, he played down the significance of the lending surge, saying it was more to do with low interest rates than a major pick-up in activity.

"Factors affecting the supply of money and people's appetite for taking major financial decisions such as house purchases meant activity in the wider mortgage market has been very subdued," said Mr White.

"However, the society has grown market share by prime residential mortgage lending."

Pre-tax profit more than halved from £164,000 to £73,000. The figure included a £173,000 payment under the Financial Services Compensation Scheme levy. The controversial scheme is aimed at helping savers hit by the collapse of financial organisations.

Critics, including Mr White, say it disproportionately affects building societies.

The Hinckley and Rugby's mortgage book fell by one per cent to £423 million, while total assets were down 2.2 per cent to £573 million.

Mr White blamed this on more customers wanting to pay off debts during the downturn. He said the aim was to grow the society's total assets during the next 12 months.

The 146-year-old building society, the 20th largest in the UK, employs more than 100 people at its head office, 11 branches and four agency offices. It has 70,000 savers and more than 10,000 borrowers.

Last month, Loughborough Building Society said it lent £26 million in mortgages in the year to October 31, an increase of seven per cent. It reported a 13 per cent rise in annual pre-profits to £751,000 over the same period.