Since the Funding for Lending Scheme started in the Summer of 2012, building societies and other mutual lenders have accounted for £15.7 billion of net lending (to September 2013).
During the same period they have drawn down £6.9 billion of FLS money. Conversely, banks and other lenders have reduced their net lending by over £12 billion but have drawn down over £16 billion from the FLS pot.
Commenting on today's release of the Q3 Funding for Lending scheme data 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. Today's figures from the Bank of England confirm that mutuals 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.
"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."
Head of External Affairs
020 7520 5926
Press & Publications Officer
020 7529 5927
Notes for Editors
1. The latest available data regarding FLS draw downs and net eligible lending broken down Q3 2013 and figures so far in table here:
Institutions participating in the FLS Mutual lenders Other lenders Total
Number of firms signed up 28 14 42
Net eligible lending in Q2 2013, £billion £4.3 £1.5 £5.8
Net eligible lending so far, £ billion £15.7 -£12.1 £3.6
Amount drawn from FLS in Q2 2013, £bn £1.5 £4.0 £5.5
Amount drawn from FLS so far, £billion £6.9 £16.2 £23.1
2. Quarter 3 2013 FLS figures were released on Monday 3 December 2013
3. The BSA represents mutual lenders and deposit takers in the UK, including all 45 building societies. Mutual lenders and deposit takers have total assets of over £380 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, 20% of the total outstanding in the UK. They hold more than £260 billion of retail deposits, accounting for 21% of all such deposits in the UK. Mutual deposit takers account for 30% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.