Mutuals continue to lead on FLS lending

During the same period they have drawn down £6.9bn of FLS money whilst banks and other lenders have reduced their net lending by over £12bn but have drawn down over £16bn.

Paul Broadhead, Head of Mortgage Policy at the BSA said: "Building societies and other mutual lenders have consistently led the mortgage market this year, helping people to buy for the first time or move house.

“Today's figures from the Bank of England confirm that mutuals out-performed the rest of the market in the third quarter, doing more net lending but at the same time drawing down less from the scheme than other lenders.

"When the availability of wholesale funding was restricted the FLS provided a welcome stimulus to lenders and lending.

“Market conditions have now improved, making funding from this source less necessary. It is clear that mutual lenders never became dependent on the FLS."