Net mortgage lending by building societies hit £12.1 billion in the year to November, almost double the £6.2 billion loaned in the same period in 2012.
Mutuals and building societies also continued to build market share, accounting for 23% of gross mortgage lending in the first 11 months of 2013, up from 21% in 2012.
Net lending by all other lenders actually fell by £2.1 billion in the year to November 2013.
Mutuals completed £1.1 billion of net new mortgage lending in November, up 84% on the same month last year.
Total gross lending by mutuals rose 32% over the year to £37.5 billion.
Around one in three new loans, 78,300, were to first-time buyers, of which 29% were made to borrowers with a deposit of 10% or less.
Robin Fieth, chief executive of the Building Societies Association, said: “Mutuals have almost doubled their net lending to homebuyers in 2013, and almost one-third of mortgage loans have been to first-time buyers, who are key to a thriving housing market.
"The mortgage market and the wider economy is now showing signs of recovery, but with this has come some concern from consumers about a potential rise in interest rates.
"Some 96% of loans made by mutuals to first-time buyers were at fixed rates. If interest rates do increase they will do so gradually, and hopefully against a background of rising incomes as the economy continues to recover.
“While mutuals have increased their lending in 2013, underwriting standards have remained high, and levels of arrears have actually reduced over the past year.
"The mutual sector has performed better than the market as a whole in this area with levels of arrears at two-thirds of the market average."
Comments