Mortgage lending by mutuals up 25% on last January

Gross mortgage lending by building societies and other mutual lenders was £2.4 billion in January, up by 25% compared to the same month last year.

Related topics:  Mortgages
Amy Loddington
1st March 2013
Mortgages
Mutuals took a 21% market share of gross lending in January, up from 18% in January 2012.
 
Net mortgage lending (gross lending minus repayments) by mutuals was £394 million in January compared to £16 million in the same month last year.
 
Mutuals approved a total of 20,979 loans in January, up 30% compared to the 16,162 in the same month last year and higher than the 18,607 loans approved in December 2012.
 
Retail savings balances at mutuals fell by £0.8 billion in January, compared to a reduction of £1.1 billion in the same month last year.
 
Commenting, on the figures Paul Broadhead, Head of Mortgage Policy said:
 
"Mortgage lending by building societies and other mutual lenders continued to grow in January, whilst lending across the rest of the market remained roughly flat. Mutuals accounted for 21% of total lending in the month across the UK.  This follows a year in which the sector grew its mortgage lending by 30% and helped over 65,000 first-time buyers.
 
"A number of societies have just released strong financial results for 2012 showing they are in a good position to lend in the coming year. Many mutuals are also signed up to the Bank of England's Funding for Lending Scheme, which will assist the sector to provide mortgage finance at competitive rates to homebuyers."
 
"Savings balances held by mutuals fell in January, as they did in January last year. It is common for there to be an outflow from savings accounts at this time of year as households repay debts accumulated over the Christmas period. However, savers do face another challenging year. Consumer price inflation remains above the 2.0% target and the Bank has forecast that it will increase towards 3.0% this year.
 
"Meanwhile growth in average earnings has weakened, putting additional strain on household budgets. Mutuals are acutely aware of the difficulties that savers face and work hard to meet their needs whilst balancing the needs of their borrowing members".
More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.