Member Article

Mutuals lending up 30% in 2012

Gross mortgage lending by building societies and other mutual lenders was up 30% in 2012, on the previous year.

According to figures compiled by the Building Societies Association, mutuals took a 22% market share of gross lending in the year, up from 17% in 2011.

Mutuals approved a total of 281,000 loans in 2012, up 20% on the 233,400 approved in 2011.

Adrian Coles, Director-General of the Building Societies Association, said: “Mutuals performed strongly in the mortgage market throughout 2012, demonstrating their commitment to those wishing to buy a home. Mutuals accounted for 22% of total gross lending in the year, far above their share of outstanding loans.

“Mutual lenders such as building societies are likely to continue to play a prominent role in the mortgage market in 2013, helped in part by the Bank of England’s Funding for Lending Scheme. Well over half of the 35 firms signed up to the scheme in December are mutuals. The full potential of the scheme and its benefits to homebuyers will be demonstrated as the year progresses.”

Stephen Williams, head of the building societies practice at Deloitte in the North East, said: “The building society sector has generally performed well over the past 18 months and is attracting increasing numbers of customers, particularly in certain niche mortgage areas where their size has allowed them to react quickly to market opportunities.

“Many of the smaller building societies also have strong links with their local communities and offer products with attractive interest rates. Customer satisfaction levels are generally good and this factor, combined with competitive products, has led to the sector capturing a greater share of the market.”

This was posted in Bdaily's Members' News section by Tom Keighley .