Building societies and other mutual lenders made £2.7 billion of mortgage loans in November 2012, up 9% compared to November 2011.

This equates to mutual lenders accounting for 21% of gross mortgage lending in the UK in November 2012.

In the first 11 months of 2012, mutuals lent £28.3 billion of mortgages (gross), accounting for 22% of the whole market. In this period, mutual lenders made over 61,000 loans to first-time buyers, up from 36,000 loans in the same period in 2011.

Net mortgage lending (gross lending minus repayments) by mutuals was £0.6 billion in November 2012. In the first 11 months of 2012 net lending by mutuals amounted to £6.2 billion, out of £7.2 billion across the market as a whole over this period.

Meanwhile, mutuals approved 24,800 new mortgage loans in November 2012, 19% higher than the 20,800 loans approved in November 2011.

Retail savings balances held with mutuals increased by £0.7 billion in November 2012, compared to an increase of £0.5 billion in November 2011. If interest credited to accounts in the period is removed, mutuals saw a net inflow into savings accounts of £0.4 billion in November compared to an increase of £0.3 billion in the same month a year earlier.

Paul Broadhead, Head of Mortgage Policy at the Building Societies Association, said: “Mortgage lending by building societies and other mutuals increased substantially in 2012 based on the data we have published today for the first 11 months of the year. Mutual lenders accounted for a greater share of total gross lending in this period than over the equivalent period in 2011, showing that the sector has stepped up to the plate and supported many of those looking to purchase a home.

“Importantly, this new lending has been broadly spread, including many first-time buyers and borrowers with lower levels of deposit. In the first 11 months of 2012, over 61,000 loans were made by mutuals to help people buy their first home, compared to 36,000 in the same period a year earlier.

“Mutual lenders continue to offer some of the most competitive mortgages available on the market. The average mortgage rate available on new loans from the sector was 4.09% in November, well under the 4.32% average on offer across the market as a whole.

“Savings balances held with mutuals also increased in November. We will see in coming months whether this is the start of a trend. Historically we often see withdrawals from savings accounts following the festive period as consumers pay off Christmas debts.”