Lending from Building Societies for home buying in UK holds steady

Building societies in the UK approved 189,700 mortgages in the first half of 2015, accounting for 29% of the total market, the latest data shows.

They also lent £26.4 billion of gross new mortgages, according to the monthly figures from the Building Societies Association (BSA).

Net lending, that is gross lending minus repayments, was £6.5 billion during this period, accounting for a 57% share of the market.

A breakdown of the figures also shows that gross lending was £26.4 billion or 27% of the market, while mortgage balances was £257.7 billion or 20% of the market.

‘This data again demonstrates the key contribution that building societies’ are making to the UK mortgage market,’ said Paul Broadhead, head of mortgage policy at the BSA.

‘Mortgage approvals are up, mortgages balances remain steady and building societies accounted for over half of net lending in the first half of the year, against a natural market share of 20%,’ he explained.

‘Whilst our support to first time buyers and aspiring home owners remains strong, the building society sector continues to service the whole spectrum of borrowers, including people requiring a mortgage that lasts into retirement,’ he pointed out.

‘The sector continues to provide innovative products helping to encourage diversity and ensure a wide range of borrowers’ needs are served,’ he added.