Building societies and mutual-owned banks continue to play a key role in helping aspiring homeowners get onto the property ladder, the report from the Building Societies Association (BSA) says. In the half-year, they provided 61,730 mortgages to first-time buyers, accounting for almost a third (32%) of all lending to new homebuyers.
The BSA says this continued support for first-time buyers reflects the sector’s focus on developing innovative solutions that help to overcome affordability challenges and other barriers to homeownership.
The sector’s mortgage balances increased by £7.5bn to £499bn over the period, accounting for 29% of all outstanding mortgage loans.
Meanwhile, building societies and mutual-owned banks attracted 12% of all cash savings in the six months to March 2026 and hold 23% of all outstanding UK savings balances, totalling £502bn.
The sector continues to be particularly popular with cash ISA savers, holding 46% of all cash ISA balances, worth £212bn, the figures reveal. The BSA says this “highlights the appeal of providers focused on delivering consistent long-term value for members rather than short-term promotional rates”.
In 2025, building societies paid savers an additional £2.1bn in interest compared with the average rates offered by the largest banks, helping households make more of their money at a time when many continue to feel pressure on their finances.
Today, the Bank of England voted to keep interest rates unchanged at 3.75%, and “many homeowners and prospective buyers will welcome the stability after several weeks of uncertainty,” said Paul Broadhead, head of mortgage and housing policy at the BSA.
He added: “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.”
