Press release

Building societies continue to perform in highly competitive mortgage market

16 February 2015
The BSA has today released mortgage lending statistics for the final three months of last year and the whole of 2014.  
 
Gross mortgage lending by building societies dropped slightly between Q3 and Q4 2014, down from £14.2 billion to £13.8 billion. Nearly 90,000 new loans were approved in the final three months of the year.  
 
Set in the context of total lending from all mortgage providers, which fell from £55.3 billion to £51.1 billion over the same period, the building society sector has continued to punch above its weight.  
 
During 2014, building societies provided 26% of all mortgage lending in the UK with gross lending of £52.6 billion during the year, out of a total of £204.4 billion lending by all mortgage lenders.  This performance was well above the sector’s more natural market share of 19%.  Over the year societies approved mortgage loans to over 373,000 homebuyers.
 
Commenting, Paul Broadhead, Head of Mortgage Policy at the BSA said:  
 
“Many societies have benefitted from their individual approach to underwriting.  This is a particular benefit for consumers who don’t quite fit the borrower profile of the mass-market automated lenders and for people who need something a little different, like self-build or family guarantee style mortgages.
 
“Competition will be stiff in 2015, especially now that an increase in the bank base rate this year looks to be out, even to the point of the Bank of England stating that a drop in this rate, whilst unlikely, is a tool that will be used if necessary.  
 
“We saw mortgage demand come off the boil at the end of last year.  Now, uncertainty around the general election and matters further afield like the fate of Greece and the Euro zone may well have a dampening effect, although consumers should take heart from the fact that mortgage availability is good.”   
 
 
 
 

 

Gross lending (£m)

Net lending (£m)

Approvals (£m)

Approvals (number

Balances outstanding (£m)

Q1 12,027 3,816 12,352 92,606 242,415
Q2 12,547 1,218 13,235 94,422 243,633
Q3 14,232 4,343 13,695 96,458 247,976
Q4 13,837 3,561 12,937 89,654 251,537
 
 
 

Take a look at more sector statistics by clicking here.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Press contacts

Hilary McVitty 

Head of External Affairs

hilary.mcvitty@bsa.org.uk

020 7520 5926

 

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 £240 billion, 19% of the total outstanding in the UK. They hold over £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.