The Nationwide building society has reported a 17 per cent rise in gross national and expat mortgage lending in the first quarter (Q1) of 2013.
Experts believe government-funded programmes, including the Bank of England’s Funding for Lending Scheme, have helped the institution to bolster its market share.
Currently, 15.1 per cent of all UK mortgage lending is done through the high street building society, up from 13 per cent in Q1 2012.
Nationwide says it believes people are increasingly moving away from banks and towards building societies in order to stop funding high-risk investment banking, which has received negative press in recent years.
Graham Beale, Nationwide’s chief executive, said: “Our portfolios have been quite prudent, this is good honest lending. But it is a fact that the economy has had a detrimental impact on asset values.”
Pre-tax profits at the firm rose by around three per cent, or £210 million from Q1 2012.
One of Nationwide’s largest competitors, the Co-operative Bank, has recently been beset by financial difficulties following the downgrading of its assets to “junk” status by Moody’s – a credit rating agency.