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Society and mutual lending reaches £3bn

Gross mortgage lending by building societies and other mutual lenders was £3bn in October, up by 29 per cent compared to the £2.3bn completed in October last year.

The Building Societies Association says mutuals accounted for 24 per cent of gross lending in October, up from 19 per cent in October 2011.

Gross lending to the end of October was £25.6bn, up from £19.1bn in October 2011.

Net mortgage lending was £700m in October and £5.6bn in the first 10 months of the year which accounts for 86 per cent of total net lending.

Mutuals approved 25,000 loans in October, up 24 per cent compared to the 20,100 a year earlier.

The average mortgage rate offered by mutuals in October was 4.18 per cent compared to 4.39 per cent across the market.

BSA director-general Adrian Coles says: “Mutuals have accounted for 86 per cent of all net lending in the UK in the year to October, which significantly outperforms other financial institutions. Around one in three loans made by mutuals are to first-time buyers.”

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