Building societies perform strongly in mortgage and savings markets
Building societies approved over 103,000 mortgages between July and September 2015, data released today by the Building Societies Association shows. These approvals accounted for 27% of the total market well above societies natural market share of 21%.
Societies advanced £15 billion in gross new mortgage lending during this period. In the same three months, net lending (gross lending minus repayments) was £3.8 billion, accounting for a 32% share of the market.
From July to September 2015, savings balances increased by £3.7 billion, giving building societies’ a 34% share.
Commenting on the results, Robin Fieth, Chief Executive of the BSA, said:
“Building societies have a great story to tell in terms of their two key areas of business – mortgages and savings. The sector is performing strongly in a fiercely competitive market – offering competitive products that are being snapped up by first time buyers, second steppers, self-builders and older borrowers. In fact, from 2012 to end of Q3 2015, building societies accounted for £56 billion (80%) of net lending out of a market total of £70 billion.
“It is not just mortgages where building societies are winning market share. In Q3, the sector attracted over a third of new deposits across the market, up from 16% in Q2 when NSI pensioner bonds were still available, and greater than the sector’s 18% share of outstanding deposits. This increase in market share demonstrates building societies’ continued commitment to savers throughout the low Bank Base Rate environment.”
