Coventry Building Society has seen a surge in mortgage lending as people turn back to 'low-risk' mutuals. The deepening credit crisis has enhanced the safe haven status of the building society, boosting net mortgage lending 24% to £851m in the first half — three times its normal market share.
This equates to almost 3% of the total market and around 25% of net lending by building societies.
The Coventry, which has no exposure to US sub-prime assets, collateralised debt obligations or investment in structured investment vehicles, has also attracted savers. Money deposited in the mutual society rose 9pc during the period to reach £905m at the end of June.