Mortgage News
Mutuals hike gross mortgage lending by 50%
Mutuals increased gross mortgage lending by 50% this September compared to the same month last year, Building Societies Association figures have revealed.
Building societies and other mutuals advanced £3.7bn last month, compared to £2.5bn in September 2012.
Gross mortgage lending was also up 32% in the first nine months of the year, at £29.9bn. Mutuals’ gross lending market share was just under a quarter, compared to roughly a fifth in 2012.
BSA director general Adrian Coles said mutuals were open for business: “What has changed, and what 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.”
Total net new mortgage lending – gross lending minus repayments and redemptions – was £9.7bn in the first nine months of the year. This was double the figure for the same period of 2012.
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The figures come as the Bank of England reported lending secured on dwellings rose 1% over three months compared to the same period last year.