August saw a marked increase in gross mortgage lending by building societies and other mutuals, new figures have shown.
According to the Building Societies Association (BSA) statistics, this activity stood at £3 billion for the month, which was 40 per cent greater than during the same four-week period in 2011.
It was shown that a 23 per cent market share of lending was taken by mutuals in August – markedly higher than the 16 per cent recorded for the corresponding month last year.
Adrian Coles, director-general of the BSA – which represents all 47 building societies in the UK – noted: “Lending by mutuals grew substantially in August compared to the same month last year, which continues the trend of increased levels of lending activity by mutuals over the year.”
Mr Coles said the figures highlight the commitment on behalf of mutuals to help homebuyers, pointing out six of the 13 organisations signed up to the Bank of England’s Funding for Lending Scheme are building societies.
He added more societies are expected to join the initiative in the near future.
