February 2000 Mutual Building Societies (MBS) increase market share

Latest figures from Building Societies Association (BSA) MBS natural share of mortgage market 23% Now provide 28% MBS natural share of savings market 18% Now provide 27% Example Feb 2000 Coventry Building Society announced Savings up 41% -double natural share Gross Mortgage lending £1.1billion -ahead of natural share net mortgage lending £507 million -growth of 12.3% 1999 MBS net lending of £10 billion similar to the figure in mid 90s before some of the large societies converted.

Although the figure needs adjusting for inflation and the housing boom it does indicate that the remaining mutuals are growing and by degree are taking the business off, and in effect displacing/replacing the new banks. Coverted societes like Halifax are in trouble, the last figures I had showed that Halifax used to get 20% of new mortgage business but now gets 7%. PORTMAN’s assets grew by 14% in 1999.

Bob Goodall