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Mortgage approvals hit 11 month high at mutuals

Mortgage approvals hit 11 month high at mutuals

Category: Mortgages

Updated: 29/09/2011
First Published: 29/09/2011

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This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Mortgage lending made by mutuals hit an 11 month high in August, the Building Societies Association (BSA) has announced.

Both mortgage approvals and gross lending by mutuals are up by 16% in the year so far compared with the same period in 2010.

Some £14.6 billion has been lent to mortgage customers in the first eight months of the year, up from £12.6 billion from January to August 2010.

The BSA said that approval figures continue to look promising as consumers take advantage of competitive rates that are currently on offer.

In total, building societies lent £2.1 billion for mortgages last month, up 10% on July and 17% on August 2010.

"Lending by mutuals has held up well over the summer months, and in August gross lending reached an 11 month high," said Adrian Coles, director-general of the BSA.

Figures released by the Council of Mortgage Lenders earlier this month reported that mortgage lending in August rose to the highest since July 2009, up to £13.4 billion.

Savings balances held at building societies were up £0.4 billion in August 2011, compared to a reduction of £0.7 billion in August 2010.

Excluding interest credited to accounts, mutuals' net receipts were essentially flat in August 2011, compared to a net withdrawal of £1.0 billion at the same time in 2010.

"Labour market conditions continue to be difficult, and inflation relatively high, so the relatively strong levels of savings at mutuals may well reflect households pulling out of equity investments in the face of continuing volatility in the markets," added Mr Coles.

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