First-time Buyers

Building societies increase market share

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In March, gross mortgage lending by building societies and other mutual lenders was

Mutuals lent £.7.8 bn in the first quarter of 2013, a 19% rise on Q1 2012.

In the first quarter of 2013, net lending by mutuals was £1.9bn, up from £0.9bn in the first quarter of 2012. During the same period in 2013 net lending by other providers was minus £1.7bn.

Building societies and other mutual lenders approved a total of 30,495 mortgages in March, up 12% compared to the 27,260 in the same month last year and up 26% on the 24,294 loans approved in February.

Retail savings balances at mutuals rose by £1.2bn in March compared to a reduction of £0.3 bn in the same month last year.

Adrian Coles, director-general of the Building Societies Association, said:

“Mutuals have been punching above their weight in the provision of higher loan to value ratio loans – of all of the mortgage products available to borrowers with a deposit of 10% or less 51% are available from a mutual lender. Net lending by banks and other mortgage providers has been negative in recent months as many of them work to restructure their balance sheets.”

Ben Thompson, MD Legal & General Mortgage Club, said: “Today’s figures highlight the importance of building societies to the mortgage market, as they take a 25% of market share. Every day we see examples of building societies of all different shapes and sizes providing competitive mortgage products to borrowers. This is another highly impressive set of figures for the mutuals.”