Press release

Building societies perform strongly in mortgage and savings markets

24 November 2015
Building societies approved over 103,000 mortgages between July and September 2015, data released today by the Building Societies Association shows. These approvals accounted for 27% of the total market – well above societies’ natural market share of 21%.
 
Societies advanced £15 billion in gross new mortgage lending during this period. In the same three months, net lending (gross lending minus repayments) was £3.8 billion, accounting for a 32% share of the market.
 

July to September 2015

  Gross lending (£bn) Net lending (£bn) Approvals   Balances
outstanding (£bn)
Building societies 15.0 3.8 103,630 261.6
Market 61.4 11.9 385,121 1,276.1
Building society market share 24% 32% 27% 21%

From July to September 2015, savings balances increased by £3.7 billion, giving building societies’ a 34% share.

July to September 2015

  Change in savings deposit balances (£bn) Savings balances outstanding (£bn)
Building societies 3.7 241.3
Market 10.9 1,332.7
Building society market share 34% 18%

 
Commenting on the results, Robin Fieth, Chief Executive of the BSA, said:
 
“Building societies have a great story to tell in terms of their two key areas of business – mortgages and savings. The sector is performing strongly in a fiercely competitive market – offering competitive products that are being snapped up by first time buyers, second steppers, self-builders and older borrowers. In fact, from 2012 to end of Q3 2015, building societies accounted for £56 billion (80%) of net lending out of a market total of £70 billion.

“It is not just mortgages where building societies are winning market share. In Q3, the sector attracted over a third of new deposits across the market, up from 16% in Q2 when NS&I pensioner bonds were still available, and greater than the sector’s 18% share of outstanding deposits. This increase in market share demonstrates building societies’ continued commitment to savers throughout the low Bank Base Rate environment.”
 
-Ends-
 

 Building society mortgage lending figures can be downloaded here.

 
 

Press contacts

Hilary McVitty
Head of External Affairs
hilary.mcvitty@bsa.org.uk
020 7520 5926
 
Notes for editors Building societies - Balances as at 30 June 2015

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 nearly £260 billion, 20% of the total outstanding in the UK. They hold almost £240 billion of retail deposits, accounting for 18% of all such deposits in the UK. Building societies account for about 29% of all cash ISA balances. They employ approximately 40,000 full and part-time staff and operate through approximately 1,550 branches.