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First-time Buyers

One in every three loans to first-time buyers

vickyhartley
Written By:
vickyhartley
Posted:
Updated:
07/05/2013

The building society sector is dominating lending to first-time buyers with a third of all loans going to first-time buyers, a figure which is projected to grow.

Research from Deloitte, the business advisory firm, showed overall lending in 2012 by mutuals totalled £30.7bn – up 30% on 2011.

Stephen Williams, building societies partner at Deloitte, said: “There are about 62 mortgage products for buyers with a 5% deposit or less and 42 are from building societies and other mutual lenders.

“Financial results from several building societies indicate that mutuals are continuing to thrive and the sector is continuing to punch above its weight, he said.

Deloitte said 218,000 people became homeowners last year, making it the first time novice buyers exceeded 200,000 since 2007.

Deloitte added: “Societies continue to fill the gap left open in the mortgage lending market as other institutions deleverage their balance sheets. They have made good use of the Funding for Lending scheme and for the remainder of 2013 we are likely to see more lending and product innovation from building societies. However, one of the main challenges mutuals face is how they cope with increased regulation from UK and European supervisors.”