Mortgage lending by mutuals rose significantly in November, new research has shown.
Compiled by the Building Societies Association (BSA), the figures revealed this activity increased by 24 per cent when compared against that recorded 12 months earlier.
The total amount lent by building societies and other mutuals reached £2.5 billion for the four-week period in 2011 – the highest level since the BSA began reporting on the current basis in January 2010 and markedly greater than the £2 billion achieved in November 2010.
Adrian Coles, director general of the BSA – which represents deposit takers and mutual lenders throughout the UK, with the nation’s 47 building societies included – explained mutuals displayed resilience in a difficult market in 2011, while lending across the entire home loan spectrum remained broadly flat.
The industry figure stated: “The New Year has seen some excellent mortgage products go on sale from mutuals with a return to some offering higher loan to value mortgages .”
He added these encouraging trends are acting against less optimistic signs currently being seen in the wider economy.
