Building societies increase mortgage lending - Mortgages - News - Moneyfacts


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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.