Building societies back one-in-three first-time buyers and paid £2.1 billion more interest to savers
Figures published today show that building societies and the two mutual-owned banks continued to grow their support for homebuyers and savers in the six months to March 2026, despite affordability pressures and intense competition for retail deposits.
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Katie Wise
Figures published today show that building societies and the two mutual-owned banks continued to grow their support for homebuyers and savers in the six months to March 2026, despite affordability pressures and intense competition for retail deposits.
Supporting homeownership
Building societies and mutual-owned banks continue to play a key role in helping aspiring homeowners get onto the property ladder. In the six months to March 2026, they provided 61,730 mortgages to first-time buyers, accounting for almost a third (32%) of all lending to new homebuyers.
This continued support for first-time buyers reflects the sector’s focus on developing innovative solutions that help to overcome affordability challenges and other barriers to homeownership.
The sector's mortgage balances increased by £7.5 billion to £499 billion over the period, accounting for 29% of all outstanding mortgage loans.
Supporting savers
Building societies and mutual-owned banks attracted 19% of all cash savings in the six months to March 2026 and hold 23% of all outstanding UK savings balances, totalling £499 billion.
The sector continues to be particularly popular with Cash ISA savers, holding 46% of all Cash ISA balances, worth £212 billion. This highlights the appeal of providers focused on delivering consistent long-term value for members rather than short-term promotional rates.
In 2025, building societies paid savers an additional £2.1 billion in interest¹ compared with the average rates offered by the largest banks, helping households make more of their money at a time when many continue to feel pressure on their finances.
Commenting on the figures Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, said:
"With the Bank Rate expected to remain unchanged at lunchtime, many homeowners and prospective buyers will welcome the stability after several weeks of uncertainty. While mortgage interest rates remain higher than at the start of the year, the market remains active with strong competition between lenders and average mortgage rates have reduced over the past three months.
“What these figures demonstrate is the value of having a diverse financial services market. Building societies continue to use their mutual model to support those that can often find it hardest to access homeownership, while also delivering better value for savers.
“At a time when household finances remain stretched, consumers are increasingly choosing organisations that focus on long-term value rather than short-term shareholder returns, which is one reason why building societies’ mortgage and savings balances continue to grow.”
[ENDS]
[1] Building societies paid £2.1 billion more interest to their savers compared to the average rates paid by the major banks.
Notes to Editors:
The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £670 billion and together with their subsidiaries, hold residential mortgages of £499.1 billion, 29% of the total outstanding in the UK. They also hold £499.2 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 46% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.
Supporting homeownership
Building societies and mutual-owned banks continue to play a key role in helping aspiring homeowners get onto the property ladder. In the six months to March 2026, they provided 61,730 mortgages to first-time buyers, accounting for almost a third (32%) of all lending to new homebuyers.
This continued support for first-time buyers reflects the sector’s focus on developing innovative solutions that help to overcome affordability challenges and other barriers to homeownership.
The sector's mortgage balances increased by £7.5 billion to £499 billion over the period, accounting for 29% of all outstanding mortgage loans.
Supporting savers
Building societies and mutual-owned banks attracted 19% of all cash savings in the six months to March 2026 and hold 23% of all outstanding UK savings balances, totalling £499 billion.
The sector continues to be particularly popular with Cash ISA savers, holding 46% of all Cash ISA balances, worth £212 billion. This highlights the appeal of providers focused on delivering consistent long-term value for members rather than short-term promotional rates.
In 2025, building societies paid savers an additional £2.1 billion in interest¹ compared with the average rates offered by the largest banks, helping households make more of their money at a time when many continue to feel pressure on their finances.
Commenting on the figures Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association, said:
"With the Bank Rate expected to remain unchanged at lunchtime, many homeowners and prospective buyers will welcome the stability after several weeks of uncertainty. While mortgage interest rates remain higher than at the start of the year, the market remains active with strong competition between lenders and average mortgage rates have reduced over the past three months.
“What these figures demonstrate is the value of having a diverse financial services market. Building societies continue to use their mutual model to support those that can often find it hardest to access homeownership, while also delivering better value for savers.
“At a time when household finances remain stretched, consumers are increasingly choosing organisations that focus on long-term value rather than short-term shareholder returns, which is one reason why building societies’ mortgage and savings balances continue to grow.”
[ENDS]
[1] Building societies paid £2.1 billion more interest to their savers compared to the average rates paid by the major banks.
Notes to Editors:
The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies and mutual-owned banks have total assets of almost £670 billion and together with their subsidiaries, hold residential mortgages of £499.1 billion, 29% of the total outstanding in the UK. They also hold £499.2 billion of retail deposits, accounting for 23% of all such deposits in the UK. Building societies and mutual-owned banks account for 46% of all cash ISA balances.
With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff. In addition to digital services, they operate through approximately 1,300 branches, holding a 35% share of branches across the UK.