Mutuals mortgage lending doubles in 2013 while arrears fall

Carmen Reichman

Mutuals and building societies have doubled their net mortgage lending over the last year, figures from the Building Societies Association (BSA) show.

The organisations handed out a net total of £12.1bn to homebuyers in the first eleven months of 2013, compared with £6.2bn in the same period the year before. This compared with a reduction in net lending by all other lenders of £2.1bn in the same period, the BSA said. About a third of the loans were given to first-time buyers, the vast majority arranged at fixed rates. Arrears at mutuals have fallen, the BSA said, currently standing at two thirds of the market average. BSA chief executive Robin Fieth said: "Building societies and other mutual lenders have performed strongly in the...

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