Building societies approved 118,600 new mortgage loans between April and June, up from the 109,800 mortgage loans approved in the first three months of the year and 98,300 in the second quarter last year.
Figures taking in all 44 Building Societies Association members also showed that gross lending was £15.9bn during the second quarter, 16 per cent higher than the £13.7bn lent for the same period in 2015.
The latest figure was however down on the high of £17.7bn recorded during the first quarter this year, as many sales were brought forward ahead of the change in stamp duty.
Across the whole market, 393,400 new mortgages were approved, giving building societies a market share of 30 per cent, down from a 32 per cent share during the first quarter.
Total market gross lending in the second quarter was £57.1bn, with building societies’ market share stable at 28 per cent, the same as in the first quarter.
Building societies were also responsible for 82 per cent of the growth of the mortgage market, contributing £5.5bn of the total £6.7bn of net lending for the second quarter.
Andrew Gall, the BSA’s chief economist, said that while it remains too early to tell how confidence in the housing market will be affected by the decision to leave the EU, it’s business as usual for building societies.
“Mortgage rates are already falling following the actions taken by the Bank of England earlier this month. Even before this, building societies offered excellent value to borrowers with an average mortgage rate of 2.75 per cent in July compared to the market average of 2.93 per cent,” he stated.
“Building societies remain popular with consumers, performing strongly in both the mortgage and savings market in the second quarter of the year.”
Savings balances outstanding at building societies now stand at £255.5bn, an 18 per cent share of the total £1.389trn across the market.
peter.walker@ft.com
