Gross lending from building societies from April - June was £16.1m, according to the BSA figures, with overall lending in the quarter reaching £61.9m.
Brian Murphy, Head of Lending for the Mortgage Advice Bureau comments:
“The report suggests that Building Societies accounted for nearly 30% of gross lending in the last quarter. This perhaps demonstrates that, given the current climate where certain types of borrowers may perhaps require a more pragmatic approach, Building Societies are able to assist as they are generally smaller than their banking counterparts, therefore able to provide a more flexible ‘case by case’ basis in terms of underwriting. In addition, some of the regional societies have launched products to support underserved areas of the market, which have proven popular and therefore boosted Building Societies’ market share.
"Given that the current market is likely to remain at the current trajectory for the foreseeable future, the fact that Building Societies are able to monitor consumer demand and quickly get new products and rates to market enables them to maintain a competitive edge, suggesting that they should fare well for the rest of this year both in terms of applications for purchases and remortgages, thus ensuring their market share remains intact, if not perhaps sees slightly more growth in the coming months.”
