Building Society Mortgage Lending Statistics

Many years ago, if you wanted a mortgage to help buy your first or subsequent home, you would get in contact with a building society where you might have had a savings account for a few years to build up sufficient funds for a deposit on a property. You would arrange an appointment with the building society manager and complete a paper application form and provide supporting documentation such as pay slips. If approved, a valuation would be arranged, a solicitor instructed and weeks later completion would take place and you would move into your new home.

The following statistics produced by the Building Societies Association show how times have changed in terms of the source of residential mortgages.

In the third quarter of 2021, there were 393,765 mortgages approved in the UK. You may find it interesting to read that building societies only approved 109,575 of those mortgages. That is only 28% of the market.

In the same period, the total gross amount of mortgage lending was £70.8 billion but building societies only made up £16.9 billion of that figure. That is only a 24% share.

In the same quarter, the net amount of mortgage lending totalled £14.0 billion with building societies only making up £2.2 billion of that figure. That is only 16% of market share.

In the third quarter of 2021, building societies only had total mortgage balances outstanding of £348.5 billion – a 23% market share of outstanding mortgage balances.

As you can see, residential mortgage lending is now being arranged by a higher percentage of non building society lenders such as banks.

You will no doubt be aware that there will be a number of people who apply for mortgages who do so via the likes of the Internet or call into the offices of a lender and meet with a mortgage adviser or arrange their mortgage through a mortgage broker i.e. not by first visiting the building society or bank branch manager.

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