Building societies increased mortgage balances by £7.5 billion to £493bn over the six months to September, new figures show.
Today’s half-yearly results from the Building Societies Association’s also incorporate lending by two mutual-owned banks, Virgin Money, now owned by Nationwide, and The Co-operative Bank, now part of Coventry.
The BSA results show that mutuals hold 29% of the UK’s outstanding mortgage balances and provided 32% of net lending in the period.
More than 220,000 new mortgages were approved, representing 31% of all market approvals.
Building societies provided 59,8612 mortgages to first-time buyers over the half-year.
Over the six months, mutuals grew cash savings balances by £8.8bn, to £496bn.
The BSA says that last year, building society members received an extra £4bn in additional benefits compared to the rates and benefits offered by banks.
It says that mutuals are working hard to maintain a high street presence as many banks close branches.
A number of building societies are opening new branches and sharing their space with local charities and community groups, it says.
Building societies account for 35% of all high street branches, up from 14% in 2012.
BSA chief executive Robin Fieth says: “Consumers are increasingly looking for providers that offer long-term value, fairness and inclusive access to services in their communities.
“These latest figures show that building societies continue to meet that demand, supporting people to buy their first home and helping households build their financial resilience.
“As member-owned organisations, our focus is on delivering real benefits to consumers and ensuring that value stays within local communities rather than being directed to external shareholders.
“While banks retreat from high streets and cut the local services communities rely on, building societies are doing the opposite – not only are they keeping branches open, but they are investing in them and opening new ones.”
He adds: “Last week we launched the Building Society Sector Growth Plan, which called on government and regulators to drive capital reforms that would unlock the full potential of the sector.
“These changes will enable building societies to help even more people to buy their own home, safeguard their savings and strengthen communities across the UK.
“We’re not asking for special treatment, just recognition of the vital role building societies play in ensuring the UK has a diverse and competitive financial services market and the ability to realise the full potential of the sector.”
