Building societies have always held a prominent position in the UK lending landscape, but their role today is broader and more ambitious than ever. From a technology provider’s perspective, they are also among the most forward-thinking lenders when it comes to upgrading systems, improving the broker journey and removing the pain points that hold cases back.
Many of the most constructive conversations around growth, digital gaps and relieving operational pressure come from societies. They want to scale in a sensible way, improve service, reach the right borrowers and build processes that match modern expectations. They also recognise that doing this well means adopting systems that support speed and accuracy without losing the member-first values that define them.
A clear and growing presence in the market
Recent figures from the BSA show that building societies and mutual-owned banks hold 29% of the UK’s outstanding mortgage balances. Yet in the six months to September 2025, they delivered 32% of all net lending and, over the same period, they approved more than 220,000 mortgages, representing 31% of all approvals across the market.
Their role for first-time buyers is even more striking. In those six months alone, they provided 59,861 mortgages to buyers taking their first step onto the property ladder. This is a significant number which reinforces their long-standing strength in helping borrowers who often need a more balanced and human review of affordability.
This evolution is ongoing, with the BSA calling for changes that would allow societies to support even more borrowers. Its recent plan argues for better access to mutual capital and regulation that matches the lower-risk nature of mutual lending. With these adjustments, societies could drive more innovation, increase lending in key areas of need and compete even more effectively with banks.
The sector’s contribution to the wider UK economy is also evident. It adds £7.2bn a year, returns an estimated £4bn to members through fairer rates, and supports 27 million people. It now operates 35% of all UK financial high street branches and employs 95% of staff outside London, helping maintain access to financial services in areas where bank presence has declined.
With the percentage of mortgage business flowing through intermediary channels having increased at pace, mutuals have widened access to their products through brokers while maintaining a close hold on service and volume management. This flow of business sits well with the flexibility many societies already show. A growing share of cases involve mixed income, later life plans, specialist property needs or complex personal situations. Societies often approach these cases with a broader view, rather than applying restrictive templates that do not reflect real life. For brokers trying to help clients with diverse needs, this is a major advantage.
Why technology now sits at the centre of their plans
Whatever the borrower type, they, along with their brokers, are asking for faster progress, less duplication, clear updates, and secure document handling. To deliver this while keeping the personal service they are known for, societies are looking to adopt better, more user-friendly and intuitive systems. Encrypted document uploads, two-way integrations, accurate data transfers, pre-populated documents, automated updates and information gathering, sourcing links and credit checks help societies improve service without creating extra pressure for operational teams.
The mutual model is a strength, but it must be supported by modern technology to remain effective. Modern mortgage origination systems allow societies to scale lending without losing service quality, make decisions more quickly, control risk more tightly and shape product ranges with more accuracy. They also help maintain the consistency brokers expect in a market where every minute counts.
This investment does not replace the human element; it simply allows the lender to work more effectively. Underwriters can spend time on the parts of a case that genuinely need attention, while advisers receive clearer updates and quicker responses.
For intermediaries, the rise of tech-driven building societies is good news. It widens choice, smooths the route to completion, and helps clients whose needs do not fit rigid lender templates. It also builds trust between brokers and lenders by cutting delays and confusion. And as societies adopt more advanced systems, their role in the intermediary market will only grow.
Dale Jannels is chief executive officer, One Mortgage System
