Skipton Building Society is making moves to assert the ongoing importance of building societies by launching the UK's first cash-only Lifetime ISA later this week. This initiative comes alongside the introduction of a 'collar' on its tracker mortgage rates, a mechanism to limit how low rates can fall, which has drawn warnings from analysts.
The broader building society sector has demonstrated significant growth, with mortgage balances increasing by $7.5 billion to $493 billion and cash savings balances growing by $8.8 billion to $496 billion in the six months leading up to September 2025. These mutual organizations hold 29% of the UK's outstanding mortgage balances and provided 32% of net lending during this period. They also approved over 220,000 new mortgages, representing 31% of all market approvals, with 59,861 of these going to first-time homebuyers.
Building societies are also attracting a high proportion of savings, receiving 27% of all UK cash savings in the first half of 2025, considerably higher than their 23% market share of savings balances. They hold 46% of all Cash ISA balances, totaling $205 billion. This reflects a consumer preference for straightforward products and competitive long-term value, with members reportedly receiving an extra $4 billion in benefits compared to traditional banks last year.
Skipton Group specifically reported strong performance in 2025, with its mortgage book surpassing $33 billion, a 7.9% increase from $30.9 billion in 2024. The Society's savings book also exceeded $30 billion for the first time, growing 7.8% and returning $195.7 million in value to members through above-market interest rates. The Group supported over 26,000 first-time buyers, with 50% of its new mortgage lending going to this demographic.
