Brian Murphy, head of lending at Mortgage Advice Bureau, says:
“Total mortgage activity in July bounced back after the dip in June and much of this is due to the performance of the mutual sector. While lending by banks in July was lower than this time last year, mutuals have demonstrated a commitment to carry on lending and have seen a year on year increase of 44%.
“Our National Mortgage Index shows total mortgage activity has been inconsistent this year, but mutuals have consistently offered some of the best rates available. As such its no surprise that lending from mutuals now represents almost a quarter of all mortgage lending.
“As an example, the 90% LTV is one of the areas most starved of funding at the moment, but more than two thirds of the top 30 two-year fixed rate products available are currently funded by the mutual sector.
“Looking forward, we are yet to see what impact the two new lending schemes announced by the Chancellor and the BoE will have, and with Santander raising its SVR last week it will be interesting to see which lenders follow suit in the next month.”