Mutuals took a 25% market share of gross lending in March, up from 22% in March 2012, according to the data from the Building Societies Association.
The figures also show that in the first quarter of 2013 gross lending by mutuals was £.7.8 billion, a 19% increase on the same period a year ago.
Net mortgage lending, gross lending minus repayments, by mutuals was £1 billion in March, up from £0.8 billion in the same month last year. In the first quarter of 2013, net lending by mutuals was £1.9 billion, up from £0.9 billion in the first quarter of 2012. During the same period in 2013 net lending by other providers was minus £1.7 billion.
Building societies and other mutual lenders approved a total of 30,495 mortgages in March, up 12% compared to the 27,260 in the same month last year and up 26% on the 24,294 loans approved in February.
Retail savings balances at mutuals rose by £1.2 billion in March compared to a reduction of £0.3 billion in the same month last year.
‘Gross lending by building societies and other mutuals increased once again in March, and was 8% higher compared to March 2012. Net lending also increased and remained positive, a feature of sector performance for 18 consecutive months now,’ said Adrian Coles, director general of the Building Societies Association.
‘It reflects the fact that the mutual sector has remained open for business. This is further evidenced by the fact that mutuals have been punching above their weight in the provision of higher loan to value ratio loans. Of all of the mortgage products available to borrowers with a deposit of 10% or less some 51% are available from a mutual lender. Net lending by banks and other mortgage providers has been negative in recent months as many of them work to restructure their balance sheets,’ he explained.
‘Savings balances held with mutuals increased significantly in March, in contrast to the reduction in balances in the same month last year. The low risk nature of building society deposit accounts is appealing to people at this time when alternative investments come with significantly more risk, but not necessarily a greater return. Households' ability to save is likely to face continued pressure this year as consumer price inflation is expected to reach three per cent, whilst growth in regular pay is at an all time low,’ he added.
