Mortgage lending up at building societies - 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.

Mortgage lending up at building societies

Mortgage lending up at building societies

Category: Mortgages

Updated: 02/03/2011
First Published: 01/03/2011

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 It is now over 6 months old so the content may be out of date.

Mortgage lending by building societies increased markedly in January, but it has been warned that a lack of first-time-buyers is harming the housing market.

Figures from the Building Societies Association (BSA) show that residential mortgage lending rose by more than a third (38%) to £1.4 billion in January, easily beating the January 2010 total of £1.0 billion.

However, the figures are slightly misleading as lending in January last year would have been down because of the number of people rushing through their mortgage to beat the end of the stamp duty holiday at the end of 2009.

"Mortgage lending by mutuals in January was up year-on-year, although the comparable figure for January last year was depressed, as it followed the termination of the last Government's stamp duty holiday that ceased at the end of 2009," said Adrian Coles, director-general of the BSA.

"On a seasonally adjusted basis, mutuals' mortgage lending and approvals figures for January were broadly similar to the averages over the preceding six months."

Separate research from Nationwide has revealed that a lack of first-time-buyers is having a major impact on prices and activity.

"The fact that first time buyer numbers are well below the levels prevailing before the financial crisis casts a shadow over the outlook for the wider market," said Robert Gardner, chief economist at Nationwide.

Figures show that house prices inched up by 0.3% in February compared with January, but are down 0.12% year-on-year.

With a lull in prices, low first-time-buyer numbers and a levelling out in demand, the housing market is said to be 'treading water' at present.

Find the best mortgage rate - Compare best selling mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.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

Building societies winning the mortgage rate war

Competition is fierce in the mortgage market, and borrowers may assume that the rates from banks will be significantly lower than those elsewhere. However, things aren’t as they seem, as building societies are the winners of the mortgage rate war.

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.