Mutuals lead on Funding for Lending

In the first year of the Funding for Lending Scheme building societies and other mutual lenders accounted for £15.7 billion of net lending.

During the period banks and other lenders reduced their lending by over £12 billion but accounted for £16 million of the FLS pot.

Paul Broadhead, Head of Mortgage Policy at the BSA said: "Building societies and other mutual lenders have consistently led the mortgage market this year, helping people to buy for the first time or move house.”

He said that the figures showed that mutuals had out-performed the rest of the market in the third quarter, doing more net lending but at the same time drawing down less from the scheme than other lenders.

He added: "When the availability of wholesale funding was restricted the FLS provided a welcome stimulus to lenders and lending.

"Market conditions have now improved, making funding from this source less necessary. It is clear that mutual lenders never became dependent on the FLS."

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