Building societies and mutual-owned banks continue to play a key role in helping aspiring homeowners get onto the property ladder, the Building Societies Association (BSA) said, after recently released figures showed they accounted for around one third (32%) of all lending to first-time buyers.
The representative body for all 42 UK building societies, including mutual-owned banks and seven of the largest credit unions, provided 61,730 mortgages to first-time buyers in the six months to March 2026. The sector’s mortgage balances increased by £7.5 billion to £499 billion over the period, accounting for 29% of all outstanding mortgage loans.
BSA members paid £2.1 billion more in interest to their savers compared to the average rates paid by the major banks. The sector holds 46% of all cash ISA balances, worth £212 billion, which the BSA said highlights the appeal of providers focused on delivering consistent long-term value for members rather than short-term promotional rates.
Paul Broadhead, head of mortgage and housing policy at the Building Societies Association, said: “With the Bank Rate unchanged, many homeowners and prospective buyers will welcome the stability after several weeks of uncertainty. While mortgage interest rates remain higher than at the start of the year, the market remains active with strong competition between lenders and average mortgage rates have reduced over the past three months.
“What these figures demonstrate is the value of having a diverse financial services market. Building societies continue to use their mutual model to support those that can often find it hardest to access homeownership, while also delivering better value for savers.
“At a time when household finances remain stretched, consumers are increasingly choosing organisations that focus on long-term value rather than short-term shareholder returns, which is one reason why building societies’ mortgage and savings balances continue to grow.”
