The BSA welcomes the FCA’s open and collaborative approach in the run up to the Mortgages Market Study published this week. The regulator has clearly listened to the feedback provided by the mortgage industry in its call for inputs earlier this year, particularly in relation to the increase in the number of borrowers who approach intermediaries for their mortgage borrowing needs. Before the Mortgage Market Review (MMR) 61% of all lending by building societies was originated by an intermediary, today that figure is 76%*. This is a significant change and it makes sense following the MMR in 2014 and the subsequent Mortgage Market Directive, to take stock of how the market has changed and how this is affecting consumers and the advice they receive.
Commenting, Robin Fieth, Chief Executive of the BSA said: “Buying a home remains the single biggest financial transaction that most people ever undertake. Ensuring they get the right product for their needs is critical. Now is the right time to take stock of the effect that the multiplicity of new rules are having on this highly regulated market; how these rules have impacted consumer and market behaviours and outcomes.
Notes to Editors:
The BSA represents all of the UK’s 44 building societies which between them accounted for 30% of all new mortgage approvals in Q3 2016:
- Building societies approved 110,129 new mortgage loans between July and September, up 6% on the 103,758 mortgage loans approved in Q3 2015.
- There were 366,125 new mortgages approvals across the whole mortgage market in Q3, meaning building societies took a market share of 30%.
- Gross lending by building societies in Q3 was £16.4bn, 9% higher than the £15.0bn lent in the same period in 2015.
- Total market gross lending in Q3 was £63.7bn, giving building societies a 26% market share.
- Building societies were responsible for 45% of mortgage market growth in Q3, contributing £4.9bn of the total £10.9bn net lending across all mortgage lenders.
- More than half (55%) of new building society mortgages for house purchase in Q3 were to first-time buyers¹
- Figures relate to building societies only published courtesy of CML data based on RMS survey (61% April 2013 – March 2014/76% Jan – Sept 2016)