Dramatic rise in mutual lending

Gross mortgage lending by building societies amounted to £3 billion during August, latest statistics from the Building Societies Association (BSA) have revealed. Total lending from mutuals rose by 40% compared with August 2011, whilst savings balances held with building societies increased by £1,158 million, suggesting a growing number of savers prefer to place their finances with mutuals rather than banks. Building societies took a 23% market share in August, 16% higher than in August 2011. Adrian Coles, director-general of the BSA, said: "Lending by mutuals grew substantially in August compared to the same month last year which continues the trend of increased levels of lending activity by mutuals over the year so far. Lending by banks however fell by 13% in August, which follows a 9% reduction in July. Savings balances at mutuals were up significantly compared to August last year. With consumer price inflation on a downwards trend, the pressure on household finances eased somewhat allowing more money to be saved. The changes in deposits may also reflect consumers switching their accounts over to mutuals over the past two months as people opt for better service and a more ethical way of banking."

Hooray, people are finally realising that mutuals are a good idea.