Mutual lending up 50% year-on-year

Published on

50%

September 2013 saw lending by building societies and other mutual lenders reach a level 50% higher than the same month last year.

The month saw mutual lending total £3.7 billion, compared to £2.5 billion in September 2012.

Total gross lending for the first nine months by the mutual sector was £29.9 billion, 32% higher than same period in 2012.

Gross lending market share for the first nine months of 2013 is 24%, up from 21% January-September 2012.

The mutual sector is the only part of the mortgage market that has grown, with net lending for the whole mortgage market in September (£1.1 billion) below total net lending by mutual lenders (£1.4 billion).

Around one in three new loans from mutuals in the nine months to September were made to first time buyers (61,000 loans) of which 29% were made to borrowers with a deposit of 10% or less.

Net new mortgage lending (gross lending minus repayments and redemptions) was £1.4 billion in September, almost three times the amount in the same month last year.

Total net new lending by mutual lenders between January and September 2013 was £9.7 billion, double the amount in the same period last year.

Adrian Coles, director-general of the Building Societies Association, said: “Building societies and other mutual lenders have been consistently open for business for the past year plus. What has changed and is the main factor driving this year-on-year lending increase, is a palpable improvement in consumer confidence. Currently, the primary success criterion that we are using to judge schemes such as Help to Buy is the positive effect that they have had on the behaviour of existing and aspiring homeowners.

“Despite the increase in the cost of living, the UK public is still saving. With energy costs in particular now rising quite dramatically, household budgets will come under increasing pressure this winter. It is inevitable that this will eventually be reflected in the amount that individuals are able to save whether for specific purchases or simply to put by for a rainy day. We may well see this change reflected both in the retail sales figures for Christmas and savings numbers into the New Year.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...