The Telegraph newspaper reports that societies are able to offer more competitive rates than banks and are more flexible towards the needs of first-time buyers.
The study found that nearly two-thirds of market-leading rates were now offered by building societies.
Building societies are also more able to provide affordable mortgages to customers buying a house for the first time and those unable to raise significant equity.
David Sheppard, managing director at Perception Finance, said: “The findings of this report would stack up with what we have seen recently. More of our business has gone to building societies of late.
“At certain loan-to-value levels the banks are very competitive but with first-time buyers the building societies have shown more flexibility.
“This may be because of the funding methods building societies employ, but also because banks are still under certain restrictions and in some cases remain government owned.”
