Building societies have become the go to firm for first time buyers to obtain lending and jump on the initial rung of the property ladder.  Many first time buyers are lost when going on the initial hunt for mortgage lending.  The landscape is full of poor deals and exceptional ones, and the rare first time buyer is able to find a deal which fits them just right.  Building societies are making house ownership a reality for many first timers.  And they are doing it by making several products suited to their needs available.

Lending from building societies spiked 30% in the year 2012, up from almost 31 billion pounds in 2011.  During the course of last year, almost 35% of loans were made to a first time buyer.

Stephen Williams, building societies partner at Deloitte, commented on the current status of lending for building societies, saying: “Financial results from several building societies indicate that mutuals are continuing to thrive and the sector is continuing to punch above its weight.

“It is striking to see how mutuals are dominating the mortgage market for first-time buyers. There are about 62 mortgage products for buyers with a 5% deposit or less and 42 are from building societies and other mutual lenders.”

Williams added: “The renaissance in lending to first-time buyers is encouraging and 218,000 people became homeowners last year, which the building societies significantly contributed to.”

First timers made their mark last year.  More than 200,000 first timers claimed mortgage lending which was the most since the year 2007.

Williams added remarks regarding the motivation behind building societies and their choice in lending to first time buyers, saying: “Societies continue to fill the gap left open in the mortgage lending market as other institutions deleverage their balance sheets.

“They have made good use of the Funding for Lending Scheme and for the remainder of 2013 we are likely to see more lending and product innovation from building societies.”