Skip to content

Mortgage lending by mutuals in the UK increased by 16% last year

Gross lending by building societies and other mutuals was £23.6 billion compared to £20.4 billion in 2010, bucking the trend across much of the rest of the market, said the BSA.

Gross lending by mutuals in December was £2.1 billion, up 15% compared to December 2010 when it was £1.8 billion.
There was a19% rise in mortgage approvals in 2011 at £23.1 billion compared with £19.4 billion in 2010. Some £1.8 billion of mortgages were approved in December, up 49% on December 2010 when it was £1.2 billion.

‘Activity in the housing market has been weak throughout 2011 with the number of transactions close to an all time low,’ said Adrian Coles, director general of the BSA.

‘New lending by mutuals, however, rose 16% in 2011 compared to 2010, whilst the UK's major banks recorded a small reduction in lending over the same period,’ he added.

‘The housing market faces significant headwinds over the coming 12 months but mutuals are poised to take on these challenges and continue to offer market leading rates and innovative products to home movers and first time buyers alike,’ he explained.