They provided 61,730 mortgages to first-time buyers, accounting for 32% of lending in the six months leading to March 2026.
Building societies’ mortgage balances increased by £7.5bn to £499bn over the six months to March.
This staggering figure represented 29% of all outstanding mortgage loans.
In spite of affordability pressures and competition for retail deposits, building societies have proven to play a key role in helping first-time buyers on the property ladder.
For instance, of the £1.1bn in new mortgage lending by the West Brom Building Society, 72% went to first-time buyers.
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Popularity with cash ISA savers
Building societies and mutually owned banks hold 23% of all outstanding UK savings balances – with this figure totalling £499bn.
Having attracted 19% of all cash savings in the six months preceding March, cash ISA savers were the largest trustees.
Building societies hold 46% of all cash ISA balances, worth a total of £212bn. In 2025, building societies paid savers an additional £2.1bn in interest compared with the average rates provided by larger banks.
In light of the Bank of England’s base rate announcement at 12pm, Paul Broadhead, head of mortgage and housing policy at the BSA, said: “With the bank rate expected to remain unchanged at lunchtime, many homeowners and prospective buyers will welcome the stability after several weeks of uncertainty. While mortgage interest rates remain higher than at the start of the year, the market remains active with strong competition between lenders and average mortgage rates have reduced over the past three months.
“What these figures demonstrate is the value of having a diverse financial services market. Building societies continue to use their mutual model to support those that can often find it hardest to access homeownership, while also delivering better value for savers.
“At a time when household finances remain stretched, consumers are increasingly choosing organisations that focus on long-term value rather than short-term shareholder returns, which is one reason why building societies’ mortgage and savings balances continue to grow.”
