Sector adds £14.8 billion in lending between October and March
Building societies and mutual-owned banks held a combined £648.3 billion in assets, now representing 29% of total UK mortgage balances and 23% of savings balances, according to data compiled by the Building Societies Association (BSA).
Between October 2024 and March 2025, mutual institutions increased their mortgage holdings by £14.8 billion, accounting for more than half of all market growth during the six-month period. They also attracted £17.4 billion in new cash savings — equivalent to one-third of all UK cash savings in that timeframe.
Despite pressures on housing affordability, especially for first-time buyers, mutual lenders continue to play a significant role in home financing. “Today’s figures demonstrate that building societies and mutual-owned banks are the backbone of the mortgage market, providing over half (52%) of the growth during the period,” the BSA noted.
First-time buyer support remained a key focus, with building societies issuing 61,400 mortgages to this group in the six months to March 2025. However, this figure excludes lending from mutual-owned banks.
The UK’s mutual financial sector has strengthened further following the recent acquisition of two shareholder-owned banks by building societies, signalling continued momentum in mutualisation and growth across the mortgage and savings markets.
Virgin Money was purchased by Nationwide Building Society in October 2024, while Coventry Building Society acquired The Co-operative Bank in January 2025. With these deals, both banks became mutual-owned, adding to the scale of the mutual sector.
The role of mutuals in local communities is also expanding. As of March, building societies maintain 30% of all high street branches across the UK — more than double their 14% share in 2013.
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