OneSavings Bank increased its net loans and advances to £455m in the first quarter of 2015 after completing the purchase of a £251m second charge mortgage portfolio.

The bank said it comfortably maintained a capital position above its objective of 10%.

OneSavings Bank focuses on residential mortgages, Buy-to-let/SME mortgages and personal loans.

The bank has currently drawn £344 under the Funding for Lending Scheme, while it is targeting a £400m drawdown in 2015.

Andy Golding, chief executive of OneSavings Bank, said: “I am very pleased with the performance of the business so far this year. We have seen an encouraging increase in new business opportunities at attractive margins and our capital position remains solid.

“Whilst we have seen increased competition in certain niche areas, the housing market remains supportive of buy-to-let mortgages.

“Despite the uncertain political backdrop, we continue to see strengthening levels of new business enquiries in our main markets and are not currently experiencing pressure on margins.

“We continue to see attractive opportunities for organic growth and will balance opportunities to maximise risk adjusted shareholder returns.”