Five mutuals had drawn £2.3 billion of funds from the FLS by the end of 2012, 17% of the total amount drawn. However, during Q4 many of the mutual lenders who have signed up for the scheme were finalising the processes for drawing funds, and are likely to do so before it closes next year.
Commenting, Paul Broadhead, Head of Mortgage Policy at the Building Societies Association said:
"The data shows that the mutual lenders which have signed up for the scheme increased their 'certified' lending to the real economy by just over £5 billion in the second half of 2012. In comparison, in the same period, other participating lenders reduced their stock of such loans by £6.5 billion. Today's figures from the Bank of England indicate that mutuals will continue to play an important role in lending to the real economy in the year ahead."
