Building societies responsible for 22% of mortgage lending
According to data from the Building Societies Association (BSA), gross mortgage lending by mutuals was £2.5bn in September, up 10% compared to the same month last year.
Net mortgage lending was £0.5bn in September and £4.9bn in total for the first nine months of the year.
Adrian Coles, director-general of the Building Societies Association (pictured) said the Bank of England’s Funding for Lending Scheme is beginning to appeal more to the mutual sector as building societies and other mutual lenders look to increase lending.
Coles said: “These lending figures show that building societies and other mutuals are continuing to increase their lending to help people buy their homes.
“The funds from the Bank of England’s Funding for Lending Scheme will take some time to be drawn and flow through into the mortgage market. As the scheme is favourable to institutions which are looking to increase their lending, it will clearly appeal to many mutual lenders.”
Meanwhile, in separate research, the latest Bank of England data has revealed that gross lending secured on dwellings was £11.2bn in September, compared to the previous six-month average of £11.7bn.
The number of loan approvals for house purchase, 50,024 in September, was higher than the previous six-month average of 48,832. The number of approvals for remortgaging stood at 28,343 last month, up from the previous six-month average of 27,664.