It says market conditions have led it to want to do more to represent the interests of its members in the mortgage and housing markets. The BSA points out building societies account for over 20 per cent of the deposit and residential mortgage markets.
It says that independent research has shown that building societies, compared with non-society competitors, offer lower mortgage rates, higher savings rates and higher standards of service.
The BSA says it is keen to build on this reputation and that its members believe their best interests can be served by the association representing them in all of the major markets in which they operate.
The CML says it will continue to address the interests of all types of lenders and to work towards an improved environment for the entire mortgage market. It says its members account for 98 per cent of UK mortgage assets totalling in excess of £1.2 trillion.
BSA chairman John Goodfellow says: “Recent events have accentuated the distinctiveness of building societies. We have attracted record inflows of new savings in recent months and operate a robust and long-standing business model.
“This expansion of representation is a natural step for the BSA and will reinforce the standing of building societies in the financial sector. It will help to ensure that the differences between building societies and banks are more widely understood.”