Mortgage lending by mutuals has reached its highest level in nearly four years, according to new data from the Building Societies' Association (BSA).
Building societies approved over £4 billion in mortgage loans in July, which represents a significant increase on the £2.8 billion approved in July last year.
And this bumper performance in July takes lending for the opening seven months of 2013 beyond £22 billion, almost a third higher than the £17 billion achieved in the equivalent seven month period in 2012.
Mortgage brokers have maintained that many of the best deals on the market have been offered by mutuals.
Our recent examination of mortgage arrangement fees found that the Yorkshire Building Society and Norwich & Peterborough Building Society had managed to undercut the lower interest rates from HSBC for all but the largest value home loans.
But HSBC is determined not to be outdone, and has pledged to reduce arrangement fees for those who hold a current account with the bank.
The timely offer coincides with the new bank account switching system, which is set to launch in a fortnight. The £750 million system will allow customers to switch between banks within seven days, with compensation guaranteed if anything goes wrong.
(Find out more in our guide: switching your current account from September 2013.)
Brian Morris, the head of savings policy at the BSA, said mutuals are still fighting their corner when it comes to mortgages.
"Mutuals are increasing their lending to the real economy, helping to boost economic activity in the UK," he said.
"First-time buyers, and in particular those with smaller deposits are being actively supported by mutuals.
"In the first seven months of the year over a quarter of lending by mutuals to first time buyers was to those with a deposit of ten per cent or less," he added.
"Mutuals continue to offer a range of competitive products, and currently around a third of products in the best buy tables are offered by mutuals."
James Booker
Which4U
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