Mutuals take bigger share of the market

Mutuals took a 25 per cent market share of gross lending in March, up from 22 per cent in March 2012. For the first quarter of 2013 gross lending by mutuals was £7.8bn, a 19 per cent increase on the same period a year ago.

Net mortgage lending (gross lending minus repayments) by mutuals was £1bn in March, up from £0.8bn in the same month last year. In the first quarter of 2013, net lending by mutuals was £1.9bn, up from £0.9bn in the first quarter of 2012. During the same period in 2013 net lending by other providers was minus £1.7bn. Building societies and other mutual lenders approved a total of 30,495 mortgages in March, a rise of 12 per cent on the same month last year and up 26 per cent on the 24,294 loans approved in February.

Adrian Coles, of the Building Societies Association, said: “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... when alternative investments come with significantly more risk, but not necessarily a greater return.”