Mortgage approvals made in July amounted to 1.9 billion, the same as in June.
Commenting on the figures, Adrian Coles, Director-General of the BSA, said:
Lending by mutual mortgage providers has picked up over the summer months, and the approvals figures suggest this level of lending may continue in the near future. Nevertheless, while the outlook appears a little brighter, there remain significant challenges such as heightened uncertainty about job prospects and household incomes, potentially limiting future demand. This could make it difficult to sustain the growth in activity.
Savings balances held at mutuals decreased by 1.0 billion in July, having stayed broadly flat in June. Without including interest that was added to accounts, 1.3 billion was withdrawn from savings accounts at mutuals in July, compared to 0.3 billion in June.
Commenting on the savings data, Mr Coles said:
The withdrawals may indicate the difficult economic conditions that households currently face. In addition, these withdrawals could have been intensified by competitive rates from NS&I, which subsequently withdrew products in the middle of July in the wake of considerable inflows.
Mutual statistics July 2010
- Mutuals gross lending amounted to 1,995 million in July 2010 compared to 1,798 million in June.
- Net lending by mutuals in July 2010 was -379 million compared to -432 million in June.
- Approvals by mutuals in July 2010 were 1,940 million compared to 1,894 million in June.
- Savings balances at mutuals decreased by 1,034 million in July 2010, compared to an increase of 16 million in June.
- Mutuals had a net withdrawal of 1,306 million in July 2010 compared to a net withdrawal of 262 million in June.
- Mutuals had a net withdrawal of 129 million from cash ISAs in July 2010 compared to a net receipt of 816 million in June.
