Building society lending on the up - Mortgages - News - Moneyfacts


Building society lending on the up

Building society lending on the up

Category: Mortgages

Updated: 30/08/2012
First Published: 30/08/2012

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 It is now over 6 months old so the content may be out of date.

Building societies are going from strength to strength, as new figures show increases in market share and overall lending last month.

Lending from building societies totalled £3.1 billion during July, significantly higher than the same period last year and 14% more than last month.

As bad news and scandals surrounding banks fill the news columns, it appears many customers are choosing to move their money to building societies. Mutuals, as they are also known, gained a massive 24% market share of gross lending in July, an increase of 17% from July 2011.

July was also good month for mortgage borrowers with mutuals, as 26% of UK mortgage approvals were by building societies, up by 32% from the previous year.

Adrian Coles, director-general of the Building Societies Association, which compiled the statistics, said: "Mutuals are currently enjoying a sustained increase in lending activity, and an increase in deposits from savers.

"Lending activity by mutuals has been growing strongly on a year on year basis for some time now, and in July gross lending rose again by a healthy 44%. At the same time lending by banks fell by 9% in July.

"Approvals by mutuals were also up in the month and this means that this trend of increased lending is likely to continue. The Funding for Lending scheme has not influenced these figures and may not start to for a number of months yet."

What next?

Compare the best mortgage deals with moneyfacts Best Buys
Compare personal loan repayments and interest with our easy-to-use loan 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 Any products featured may be withdrawn by their provider or changed at any time.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

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.

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.