Strong Performance From Building Societies in Mortgage and Savings Markets

Strong Performance From Building Societies in Mortgage and Savings Markets

Building societies approved over 103,000 mortgages between July and September 2015, data released by the Building Societies Association shows.

These approvals accounted for 27% of the total market – well above societies’ natural market share of 21%.

Societies, like Beverley Building Society, advanced £15 billion in gross new mortgage lending during this period. In the same three months, net lending (gross lending minus repayments) was £3.8 billion, accounting for a 32% share of the market.
July to September 2015

Gross lending (£bn) Net lending (£bn) Approvals Balances
outstanding (£bn)
Building societies 15.0 3.8 103,630 261.6
Market 61.4 11.9 385,121 1,276.1
Building society market share 24% 32% 27% 21%

 

From July to September 2015, savings balances increased by £3.7 billion, giving building societies’ a 34% share.

July to September 2015

Change in savings deposit balances (£bn) Savings balances outstanding (£bn)
Building societies 3.7 241.3
Market 10.9 1,332.7
Building society market share 34% 18%

 

Commenting on the results, Robin Fieth, Chief Executive of the BSA, said:

“Building societies have a great story to tell in terms of their two key areas of business – mortgages and savings. The sector is performing strongly in a fiercely competitive market – offering competitive products that are being snapped up by first time buyers, second steppers, self-builders and older borrowers. In fact, from 2012 to end of Q3 2015, building societies accounted for £56 billion (80%) of net lending out of a market total of £70 billion.

“It is not just mortgages where building societies are winning market share. In Q3, the sector attracted over a third of new deposits across the market, up from 16% in Q2 when NS&I pensioner bonds were still available, and greater than the sector’s 18% share of outstanding deposits. This increase in market share demonstrates building societies’ continued commitment to savers throughout the low Bank Base Rate environment.”

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