Mutual's mortgages feeding off higher rates

16 October 2006
Financial analyst site has reported that, for the first time in 18 months, there are four building societies (BS) in the top ten most popular mortgage lenders.

The November table shows that Coventry BS, Skipton BS, Portman BS, and the holder of the top spot Nationwide BS, are the four institutions present.

The last time this occurred, in May 2005, Nationwide was joined in the top ten by Chelsea BS, Coventry BS and Stroud & Swindon BS.'s Robin Amlot said the reason for the resurgence among mutuals could be the rising interest rates that were pushing institutions that rely on shareholder contributions to escalate their rates at a faster pace.

"It's early days yet but it's possible that, against the backdrop of rising base rates, building societies may once again be able to play their strengths – focussing on delivering quality deals to members without having to worry about generating returns for shareholders," Mr Amlot noted.

The other leading mortgage providers in September's figures included Woolwich, First Active, Alliance and Leicester, Northern Rock, Mortgage Trust and Abbey.

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