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."
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