Mutuals lend £2.9bn in March

Robyn Hall

April 30, 2013

The figure represents an 8% year on year rise as mutuals took a 25% market.

For the first quarter of 2013 gross lending by mutuals was £.7.8bn, a 19% increase on the same period a year ago.

Net mortgage lending by mutuals was £1.0bn, up from £0.8 billion in the same month last year.

In the first quarter of 2013, net lending by mutuals was £1.9bn, up from £0.9 bn in the first quarter of 2012. During the same period in 2013 net lending by other providers was minus £1.7bn.

Adrian Coles, director-general of the Building Societies Association, said: “Gross lending by building societies and other mutuals increased once again in March and was 8% higher compared to March 2012.

“Net lending also increased and remained positive which has been a feature of sector performance for 18 consecutive months now.

“It reflects the fact that the mutual sector has remained open for business. This is further evidenced by the fact that mutuals have been punching above their weight in the provision of higher loan to value ratio loans – of all of the mortgage products available to borrowers with a deposit of 10% or less 51% are available from a mutual lender.

Building societies and other mutual lenders approved a total of 30,495 mortgages in March, up 12% compared to the 27,260 in the same month last year and up 26% on the 24,294 loans approved in February.

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