Press release

Building societies support the mortgage market with 29% of approvals as lending activity remains subdued

20 November 2017

Released today, lending and savings figures from the BSA show that building societies approved 29% of all new mortgages in Q3 2017, and savers deposited £1.3 billion in building society accounts.

Mortgage lending Q3 2017

  • Building societies approved 114,793 new mortgage loans, up 4% on the 110,216 mortgage loans approved in Q3 2016. (Q2 2017: 112,835).

  • There were 397,532 new mortgages approvals across the market, giving building societies a market-share of 29%.

  • Gross lending by building societies was £17.3bn, up 6% on the £16.4bn lent in the same period in 2016. (Q2 2017: £16.1bn).

  • Total market gross lending was £68.1bn, giving building societies a market-share of 25%.

  • Building societies hold outstanding mortgage balances of £297.3bn, a 22% market-share.

Savings balances Q3 2017

  • Savings balances held with building societies increased by £1.3bn, down 71% on the £4.5bn in the same period in 2016. (Q2 2017: £3.3bn).

  • Savings balances across the market increased by £10.4bn, giving building societies a 13% market-share of new savings deposits; banks took 70% and NS&I 17%.

  • Building societies hold savings balances of £266.4bn, an 18% share of the £1,458.3bn across the market.

Commenting Andrew Gall, Chief Economist at the BSA said:

“Building societies took a sizeable market share of mortgage lending in the third quarter of 2017. Activity in the market has been subdued but there was a pick-up in remortgaging activity prior to the widely anticipated rise in the Bank Rate from 0.25% to 0.50% as borrowers fixed their mortgage before rates increased. Almost 90% of new mortgages in Q3 were on fixed rates, so many homeowners will be protected from interest rate rises for a number of years.

“Savings balances at building societies increased by over a billion pounds in Q3 of this year, but this is significantly lower than in the same period last year. This mirrors a trend of weak growth across the savings market as a whole. Households have been dealing with prices rising faster than wages for some time, and may now be using savings to supplement their income. The rise in Bank Rate should give savers a small boost, but households may struggle to save more until wages grow faster than inflation.”

Notes to editors

Building society mortgage lending figures can be downloaded here
Building society savings figures can be downloaded here.

Lending Q3 2017

Gross Lending (£m)

Net Lending (£m)

Approvals (£m)

Approvals (number)

Balances outstanding (£m)

Q3 2016

16,374

4,886

15,770

110,216

282,861

Q2 2017

16,113

4,583

16,240

112,835

293,692

Q3 2017

17,327

3,559

16,112

114,793

297,258

% change on LY

6%

-27%

2%

4%

5%

Total Market

68,100

12,841

65,627

397,532

1,355,028

Market share

25%

28%

25%

29%

22%

 

Savings Q3 2017

Change in balances (£m)

Balances outstanding (£m)

Q3 2016

4,542

260,232

Q2 2017

3,308

265,457

Q3 2017

1,327

266,417

% change on LY

-71%

2%

Total Market

10,381

1,458,309

Market share

13%

18%