Mutual lending to FTBs rises by 50%, says BSA

Over 32,000 buyers have been helped onto the property ladder by a mutual in the first five months of 2013, new data has revealed.

Related topics:  Mortgages
Amy Loddington
25th July 2013
Mortgages

Out of these, 8,900 had a deposit of ten per cent or less – more than two and a half times more than in the same period last year.

Earlier this month, more general data from the Bank of England showed that lending to all borrowers from mutuals was £3.6 billion in May – a 29 per cent increase on May 2012. This means that mutual lenders accounted for 24 per cent of all mortgage lending across the UK in May.

Commenting, Paul Broadhead, Head of Mortgage Policy at the BSA said:

“Building societies and other mutual lenders continue to play a dominant role in supporting members of the UK public looking to buy a new home. While total net mortgage lending across all other lenders dropped by £3.4 billion in the five months to May, net mortgage lending by the mutual sector increased by £4.0 billion.

“Supporting first time buyers is very much part of the sector’s ethos and in the first five months this year the number of loans to this group jumped by 50 per cent compared to last year. Importantly, as deposits remain a clear barrier to home ownership, building societies and other mutuals have made over two and a half times as many loans to first time buyers with a deposit of 10 per cent or less.

“On the savings side, the strong inflows suggest that mutuals are offering attractive products despite the challenges for providers and savers alike in relation to generally low interest rates across the market. For consumers the ongoing tough economic conditions faced by many households remain difficult.”

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.