According to the latest figures from the Building Societies Association (BSA), building societies approved 109,575 mortgage loans in Q3, up four per cent from the same period in 2020.
The report also noted that building societies held outstanding mortgage balances of £351.2bn, which accounts for a 23 per cent share of the total mortgage market.
Savings balances at building societies have grown by £4.2bn in Q3 2021, three times the £1.4bn increase in the same period last year.
It added that building societies’ held savings balances of £328.2bn, an increase of 10 per cent on Q3 2020.
Savings balances in the quarter grew by £4.2bn in the quarter, which is nearly triple the £1.4bn increase in Q3 2020.
Cash ISA balances held with building societies rose by £200m in Q3 2021, compared to a fall of £3.6bn across the market as a whole.
Andrew Gall, chief economist at the BSA, said: “The strong level of mortgage lending activity in the third quarter by building societies, and across the wider market, suggests that the tapering of the stamp duty holiday has not been a major barrier to property purchase. It is likely that households will continue to re-evaluate their housing needs in the post-pandemic world, which will to continue to support demand into the new year.”
He added that: “The Bank of England is sounding like it is ready to increase the Bank Rate from its historically low level of 0.1 per cent over the coming months. Whilst this may see some mortgage rates rise, the vast majority of households are on fixed term products and so won’t see any immediate change to their monthly repayments.”