The last year saw 16% of people in the UK take out products from mutuals, “partly fuelled by the Coronavirus pandemic and its impact on how people view their finances”, according to The Nottingham Building Society.

Its study adds that a further one in eight adults, around 6.3 million people, plan to open an account over the coming 12 months.

The mutual’s survey also says that just over one in five of those considering opening an account this year will be first-time building society customers.

The top ten mutual lender said customers were not just motivated by the best deals, but by the local foundation of these firms.

It found that 37% of customers said they took out products with building societies because their rates are “more competitive”

However, just behind, 36% said they favoured mutuals because they are founded “within their local community”.

The report added that around 31% of customers liked the “giving back ethos of mutuality”, 24% were impressed by the quality of service, and 14% like to “have a say on how they are run”.

The Nottingham’s chief executive, David Marlow says: “I think one of the many things we’ve learnt from the last year is that how organisations support their communities really does matter. Those that have stepped up and put people before profits have made a real difference.”

Marlow adds: “It is clear from our research that it’s this ethos and commitment to local communities that’s as important to customers as the products on offer.”

The mutual reported total assets of £3.8bn and gross mortgage lending up by 40% to £490m last year, according to its 2020 annual report.

The survey on behalf of The Nottingham Building Society interviewed a representative sample of 1,051 people online between 12 and 15 March.