A recent study produced by the Building Societies Association (BSA), has shown that one in three mortgages approved in the UK are made by building societies.
In the first quarter of 2017, building societies approved a third of mortgages, in addition to providing one in three first time buyer loans. Data released by the BSA shows that half of the mortgage market’s growth was delivered by building societies. This equates to £3.9bn of the total £7.9bn lending across the industry.
During that quarter, a total of 112,287 new mortgages were approved by UK building societies. This represents a 2% increase compared to the corresponding period of last year. The total market share for building societies during the first quarter reached 31%.
According to the BSA’s chief executive, Robin Fleth, although the housing market is facing a number of challenges, like the shortage of affordable housing, building societies have achieved a high market share in mortgages in 2017’s opening three months. He said:
“Buying a home is not always a straightforward process and each borrower has different needs and faces different circumstances. Building societies are able to take a more personalised approach to lending.”
The CEO added that although property prices have fallen recently, the high demand for housing combined with record low interest rates will ensure that house prices remain steady. Mortgage advisers look at products available from banks and building societies, using the knowledge gained from the CeMAP training courses to find the most suitable product for requirements.
