According to data from the Building Societies Association (BSA), this was also up by 11 per cent against Q2 despite the worsening outlook for the UK’s economy and continued cost of living squeeze.
Approval levels dipped by four per cent to 105,060 on an annual basis, and compared to Q3 was nine per cent lower.
Some 26,084 first-time buyers obtained mortgages from building societies, which was a nine per cent decline on lending to new homeowners last year.
Robin Fieth, chief executive of the BSA said: “Gross lending by building societies remained strong throughout the third quarter, with the sector maintaining its share of the mortgage market at just under a quarter of total outstanding balances.
“Despite several Bank Rate rises in the first nine months of the year, the lending figures show the resilience of the housing market during this time. However, the drop in mortgage approvals suggests that the uncertain economic outlook and challenging environment for household finances will lead to more subdued lending in the coming months.”
Fieth said although arrears rates were still low, mutuals were “sensitive” to the increasing number of people facing squeezed household budgets.
He added: “Anyone concerned about their ability to pay their mortgage should therefore get in touch with their lender or a debt adviser as soon as possible. They will provide a safe space for a confidential, non-judgmental chat and will do everything possible to help each borrower with options based on their own personal circumstances.”
