Building societies increase mortgage lending - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Building societies increase mortgage lending

Building societies increase mortgage lending

Category: Mortgages

Updated: 03/04/2013
First Published: 03/04/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Gross mortgage lending from building societies continued to grow during February, reaching £2,465 million and reflecting an annual rise of 29%, according to latest figures issued by the Building Societies Association (BSA).

The number of mortgages successfully approved by mutuals grew from 21,020 to 24,295 during February 2013.

Mutuals took a 23% share of the mortgage market, up from 18% last year.

Increased levels in mortgage activity is believed to be a result of the £80 billion Funding for Lending Scheme, launched last August by the Government to kick-start the ailing housing and mortgage market.

Paul Broadhead, head of mortgage policy at the BSA, said: "Both gross and net mortgage lending rose in a market where lending by other institutions remained weak.

"We welcome the Government's renewed focus on the challenges faced by people looking to buy for the first time or move home, but it is a shame that the Help to Buy guarantee is needed.

"If all lenders acted to help first-time buyers and other creditworthy borrowers with smaller deposits, as mutuals have done consistently over the last year and more, this intervention would not be needed," he concluded.

Help to Buy, unveiled in the Chancellor's Budget last month, is available to borrowers with deposits of 5% and comprises of two schemes: the "equity loan" whereby the Government will lend up to 20% of the value of a new build home, and a "mortgage guarantee", intended to incentivise lenders to broaden the availability of mortgages to people with small deposits.

What next?

Search all mortgages
Mortgage repayment calculator
How much can you borrow calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.

10-year fixed mortgage market flourishes

Given upcoming negotiations on the UK’s relationship with the EU, we are expected to have some uncertain times ahead. As a result, many borrowers will be seeking long-term mortgage repayment security, and happily, the 10-year market is flourishing.