Building societies and other mutual lenders increased their gross mortgage lending in September, new figures have shown.
Provided by the Building Societies Association, the statistics revealed this sum stood at £2.5 billion for the month, which was ten per cent higher than in September 2011.
In addition, it was shown that mutuals accounted for a 22 per cent market share of gross lending in the month – markedly more than the 17 per cent reported during the same four-week period one year earlier.
Adrian Coles, director-general of the BSA – which represents all of the UK’s 47 building societies – said the research shows mutuals are continuing with their efforts to help people buy their homes.
Mr Coles pointed out it will take some time for funds from the Bank of England’s Funding for Lending Scheme to begin making their way through the home loan market.
“As the scheme is favourable to institutions which are looking to increase their lending, it will clearly appeal to many mutual lenders,” he added.
The findings also showed that net mortgage lending by mutuals reached £0.5 billion in September, taking it to £4.9 billion for the first nine months of the year.
