Societies’ appetite to lend pays off for borrowers
Latest figures from the Building Societies Association (BSA) have shown gross mortgage lending is up 20 per cent year-on-year in October. Building Societies lent £2.3bn in October 2011, compared to £2bn in October 2010.
In contrast, gross lending by the high street banks has increased by just 4 per cent.
Adrian Coles is the Director-General of the BSA:
“With the government recently announcing policies that highlight the importance of the housing market to the economy, building societies and other mutual lenders continue to play their part supporting buyers.”¹
Scouring the likes of mortgage comparison sites, such as Moneysupermarket.com, building societies are outnumbering high street banks with low rate, competitive deals across all mortgage types.
Four of the best five fixed rates mortgages are currently offered by building societies; Leeds’ 2 year fixed at 2.29 per cent for up to 70 per cent loan-to-value (LTV) topping the charts. The lowest tracker rate mortgage on Moneysupermarket.com is offered by Santander. However, the 2.09 per cent rate is only available for up to 60 per cent LTV while second place Chelsea BS at 2.19 per cent is available for up to 70 per cent LTV.
Building Societies are even leading the way in the low deposit game; Leek United BS coming up trumps with a three-year fixed at 3.99% for up to 90% LTV. Its closest competitor, HSBC’s five-year fixed at 4.89%.
Dale Jannels, Managing Director of All Types of Mortgages is confident the increase in societies’ gross lending is not a passing trend:
“Societies are the ones that have had the appetite to lend this year and are more active than high street banks. They are always phoning us and wanting to lend more. Societies will often think outside the box when it comes to products and that is what the market needs.”¹
Content correct at time of publication