During the three months to September 2017, 90% of mortgages taken out with building societies were fixed rate products.
Despite the number of mortgage approvals remaining low, building societies have maintained 29% of the market share of approvals, according to recently released figures. This figure is the same as the previous quarter, but lower than the first three months of the year. The number of mortgages approved by building societies had risen year on year by 4% to 114,793 from July to September 2017, according to data released by the Building Societies Association (BSA).
Building society gross lending for that period accounted for a quarter of all approved mortgages. According to the chief economist at the Building Societies Association, Andrew Gall, there had been a flurry of activity in the re-mortgage market, as borrowers secured their mortgage rates before the Bank of England increased the base rate. He added that as nearly 90% of new mortgages during the third quarter of the year were fixed rate, borrowers will be secure from the threat of increased interest rates for a while.
The director of Mortgage Concepts Associates, Mike Richards, said that he believes that customers get better service from building societies than some of the banks, as many of the services provided are local. Richards added that he believed that building societies will continue to grow, especially in later life borrowing, which was becoming more popular among borrowers.
CeMAP trained mortgage advisors are able to provide advice about the lenders and various deals available.