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Mortgage lending increases during May

Mortgage lending increases during May

Category: Mortgages

Updated: 03/07/2012
First Published: 03/07/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Latest statistics from the Building Societies Association (BSA) have revealed gross mortgage lending increased to £2.8 billion during May this year, highlighting a huge rise of 54% when compared to May 2011.

The report, which focuses on lending by building societies and other mutual mortgage lenders, found that during the initial five months of this year, lending rose 40% compared to the same period in 2011.

The total net lending figure for building societies reached £835 million in May, with mortgage approvals up by 67%, to £2,982 million, 32% higher than the average over the previous six months. Mortgage approvals also increased by 48% in the first five months of the year, compared to the same period in 2011.

Retail savings balances at building societies increased by £240 million during May, compared to a net withdrawal of £419 million in the same month last year.

The BSA stated, however, that despite savings balances having increased, they were "virtually flat" after interest credited had been removed.

Adrian Coles, director general of the Building Societies Association, said: "Lending activity in May was once again strong. Other data collected by the BSA shows that nearly a quarter (24%) of new lending this year by building societies was to first-time buyers."

"The mutual sector is giving a strong signal that it is open for business to all types of borrower whether buying a property for the first time or remortgaging. Approvals by building societies were up significantly in May both compared to last year and the previous six months which demonstrates the mutual sector's commitment to lend in the coming months."

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