Press release

Building societies approve 91,000 mortgages in Q1

26 May 2015
Building societies lent £12.7 billion of gross new mortgages in the first three months of the year, new data released by the BSA has revealed. This accounts for 29% of all new lending across the market. Societies also approved over 91,000 mortgages in the first quarter.
 
Mortgage lending by building societies, net of repayments, was £3.5 billion in Q1. Across all other lenders net lending was negative at -£0.5 billion. Net lending by all lenders totalled £3.0 billion.
 
In the savings market the effect of NS&I’s Pensioner Bonds was clear, with building societies seeing savings balances fall by £2.2 billion in the first quarter of the year.
 
Commenting, Paul Broadhead, Head of Mortgage Policy at the BSA said:
 
“Lending by building societies has been strong. Without the contribution of this section of the market the stock of mortgage loans across the UK would have shrunk in the first three months of the year.
 
“Societies hold a 20% share of mortgage balances, but have had a much greater share of the flow of new lending for some time. In the first quarter they delivered 29% of all new mortgages. This is partly because of competitive products and partly due to the more personal approach they take to underwriting. The trend looks set to continue in Q2, as around a third of mortgage approvals in Q1 were from building societies.”
 

Building society mortgage lending figures can be downloaded here.


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Press contacts

Hilary McVitty
Head of External Affairs
020 7520 5926
hilary.mcvitty@bsa.org.uk


 

Notes for Editors

The Building Societies Association (BSA) represents all 44 UK building societies. Building societies have total assets of over £330 billion and, together with their subsidiaries, hold residential mortgages of over £250 billion, 19% of the total outstanding in the UK. They hold almost £240 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for about 28% of all cash ISA balances. They employ approximately 39,000 full and part-time staff and operate through approximately 1,550 branches