Building societies responsible for 57% of mortgage market growth

Ryan Bembridge

May 23, 2019

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Building societies accounted for 57% of the growth of the mortgage market in the first quarter of 2019, figures from the Building Societies Association show.

Building societies achieved net lending of £4.9bn, up from £4.3bn in the first quarter last year.

On a gross lending basis they took a 27% market share by lending out £16.7bn, 6% more than the £15.8bn recorded in Q1 2018.

Robin Fieth (pictured), chief executive at the BSA, said: “Building societies continued to grow their market share in both the savings and mortgage markets in the first quarter of the year.

“There hasn’t been much growth in the mortgage market over the last few years, but homebuyers are evidently turning to building societies more often when securing mortgage finance.

“Building societies understand that people can have complex needs and that sometimes a more personalised approach to mortgage lending is required.”

Outstanding mortgage balances held by societies rose by 8% year-on-year to £327.1bn in the first quarter, accounting for 23% of the overall market.

Societies lent to almost 25,000 first-time buyers in Q1 2019.

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