Mutual mortgage lending up 50pc on 2012
This is according to the Building Societies Association which has also claimed that the mutual sector is the only part of the mortgage market that has grown, with net lending for the whole mortgage market in September (£1.1 billion) below total net lending by mutual lenders (£1.4 billion).
The BSA’s figures show gross lending in September up 50% to £3.7 billion compared to £2.5 billion in September 2012. In fact total gross lending for the first nine months was £29.9 billion, 32% higher than same period in 2012.
Around one in three new loans from mutuals in the nine months to September were made to first-time buyers (61,000 loans) of which 29% were made to borrowers with a deposit of 10% or less.
Total net new lending by mutual lenders during January to September 2013 was £9.7 billion, double the amount in the same period last year.
Commenting, Adrian Coles, director-general of the BSA, said: “Building societies and other mutual lenders have been consistently open for business for the past year plus. What has changed and is the main factor driving this year-on-year lending increase, is a palpable improvement in consumer confidence.
“Currently, the primary success criterion that we are using to judge schemes such as Help to Buy is the positive effect that they have had on the behaviour of existing and aspiring homeowners.”