Mortgage lending from building societies highest in four years - now is the time to apply for a mortgage
It is not easy to get a mortgage and the approval process is rigorous. But consumers wanting to borrow for a house can take heart in the fact that mortgage approvals from building societies are the highest they have been since 2010.
So if you keen to buy your first property, carry out some home improvements, or borrow to buy a larger property, then applying to a building society is an excellent consideration at this point in time.
According to money magazine Financial Reporter, mortgage approvals by building societies and other mutual lenders increased by 30 per cent in summer 2013. This translates into loans totalling £4bn in that period in time. This figure is reported to be the highest monthly amount since early 2010, when reports were first published for this lending sector.
From January until July 2013, gross lending by the mutual sector was more than £22bn. This is an increase of 30 per cent. The figure compares to £17bn in the same time frame in 2012. The figures mean that the gross market share of mortgage lending for building societies is more than 22 per cent as of the end of summer 2013.
Mortgage loans to first time buyers make up close to 30 per cent of loans approved by mutuals since the beginning of 2013. More than 25 per cent of that figure goes to first time buyers who have a deposit of ten per cent or less.
Net new mortgage lending (gross lending minus repayments) by mutuals was £1.3 billion in July and £6.8 billion in the first seven months of the year. This is greater than the total net lending by the sector across the whole of 2012.
The Building Societies Association says according to reports other institutions such as banks have not increased their lending. The BSA states that these figures show that the BSA is helping to boost the economy.
"First-time buyers, and in particular those with smaller deposits are being actively supported by mutuals," says Brian Morris, head of savings and policy at the BSA.
Furthermore, building societies and other mutual are seeing savings balances increase significantly this year. According to the BSA, this illustrates that mutuals are offering very competitive products and are continuing to attract both lenders and savers.
If you are seeking any kind of mortgage, be it personal or commercial, and have seen an offer from a building society, or want to explore mutual products, UKFCS Mortgage and Loan Specialists can assist with the application process. We can help ensure that you are thoroughly prepared and understand what is required and how to assemble all the required documents.
The figures from the BSA for 2013 are good news for existing owners looking to renovate or new buyers, so contact UKFCS Mortgage and Loan Specialists today for sound, independent and expert advice on how to work with a mutual to obtain a mortgage.
Kirk at UKFCS is a very professional and competent broker, he is very trustworthy and we have worked closely for many years helping lots of clients in the process. Highly recommended.By Chris Warner in Harlow, Essex
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