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 12% of all cash savings in the six months to March 2026 and hold 23% of all outstanding UK savings balances, totalling £502 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.

Supporting communities

At a time when many banks have reduced their face-to-face services, building societies continue to maintain a strong high street presence, supporting access for consumers who value in-person services. With a number of building societies actively opening new branches and innovating how they use them, such as sharing their space with local charities and community groups, they now account for 35% of all high street branches, up from 14% in 2012.

Building societies’ support for local communities also includes the provision of financial education and initiatives like UK Savings Week, which help individuals and families build financial confidence and resilience.

BSA comment

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.”

[1] Building societies paid £2.1 billion more interest to their savers compared to the average rates paid by the major banks.