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Mutuals approve almost a third of mortgages as BSA issues Brexit warning

  • 26/11/2018
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Mutuals approve almost a third of mortgages as BSA issues Brexit warning
Building societies lent almost a third of new mortgages in the three months to the end of September, as the Building Societies Association (BSA) warned Brexit storm clouds are hurting the market.


Mutuals approved 31% of home loans in the third quarter at 126,000 – up 10% from the same period a year earlier.

And lent a similar proportion of first-time mortgages in the market, amounting to 30,000 loans.

Overall, the providers accounted for 33% of the growth in the mortgage market in Q3 2018, with net lending of £3.9bn.

Over the 10 years since the financial crisis, net lending from building societies stands at £105.4bn, almost half of the whole market total.


Brexit looming


However, Paul Broadhead, BSA head of mortgage and housing policy warned that politics is now dampening the market.

He said: “Brexit-related uncertainty is having a growing negative effect on home-buying and mortgage activity.

“Remortgaging remains the only part of the market that is growing and many buy-to-let borrowers are refinancing.

“Especially for those with small buy-to-let portfolios, the implication of the tax changes will only really be felt as they complete their next tax return.

“First-time buyers are still active, but numbers are subdued and it’s unlikely that this part of the market will pick-up substantially in the short-term.”

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