Menu

First-time Buyers

Mutuals lend 30% more in 2012

Julia Rampen
Written By:
Posted:
30/01/2013
Updated:
30/01/2013

Gross mortgage lending by building societies and other mutual lenders increased by 30% over 2012 to

Mutuals made up over 20% of gross lending last year, compared to 17% in 2011. In total, mutuals approved 281,000 loans – another increase of 20% on the previous year.

Building Societies Association director general Adrian Coles said: “Mutual lenders such as building societies are likely to continue to play a prominent role in the mortgage market in 2013, helped in part by the Bank of England’s Funding for Lending Scheme.

“Well over half of the 35 firms signed up to the scheme in December are mutuals. The full potential of the scheme and its benefits to homebuyers will be demonstrated as the year progresses.”

Ben Thompson, MD of Legal & General Mortgage Club, said of the building society lending figures: “The net lending result is particularly impressive and reflects true appetite, ambition and growth in this market, as well as perhaps a strong desire for customer retention and all round customer care.

“With a large number of building societies signed up to the Funding for Lending Scheme, we expect this strength in performance to continue.”

Sponsored

Compared to the dramatic increase in lending by mutuals, Bank of England figures released today showed total lending to individuals secured on dwellings rose by a more moderate 0.6% year on year in December.

Gross lending secured on dwellings was £12.4bn in the last month of 2012, compared to the previous six month average of £11.7bn.

Mayfair Bridging director Shoaib Bux said: “After spending most of 2012 as a dead man walking, the mortgage market is breaking into a modest jog.

“It’s still looking more than a little wobbly, but it made great strides at the end of last year.”