Deloitte: Mutuals making the most of FLS
The business advisory firm said that it believes that mutuals have been able to take a large share of the first-time buyer market by using the Funding for Lending Scheme.
The comments follow the release of figures from the Building Societies Association which revealed that building societies and other mutual lenders gross mortgage lending had reached £2.9bn in March.
Stephen Williams, head of the building societies practice at Deloitte, said: “These lending figures show that mutuals continue to thrive and that lending is up by about a fifth in the first few months of this year compared to last.
“Throughout the rest of the year building societies are set to continue to fund an increased demand for private rental, social housing provision as well as home ownership. They are taking advantage of gaps in the mortgage market as banks continue to deleverage.
“This will be supported by the Funding for Lending Scheme which will provide greater lending capacity.
“There has also been a welcome resurgence in lending to first-time buyers, which is at the highest level since 2007. I expect this trend to continue this year.”