This is 23% higher than the £1.4 billion approved in February last year. Gross mortgage lending by mutuals was £1.5 billion in February, compared to £1.2 billion in February 2010.
Adrian Coles, Director-General of the Building Societies Association, said:
"Mortgage lending by mutuals continues to grow from the low levels seen last year. The good financial results released recently by many mutual lenders show that they are strongly placed to offer attractive products to homebuyers.
"However, activity in the housing market remains at levels that are subdued relative to previous periods, as potential buyers continue to have concerns about the economic outlook."
"Savings balances held at mutuals increased by £359 million in February, down on the £807 million increase in February 2010 but an improvement on the decrease in balances of £424 million in January this year.
"Following the usual withdrawal from savings accounts in January as households pay off their Christmas bills, it is pleasing to see a modest increase in savings balances at mutuals in February.
"With earnings growing at a slower rate than prices, and imminent rises in some tax rates, it is likely to be difficult for households to substantially increase the amount they save over the months ahead."
Mutual statistics February 2011:
- Mutuals' gross lending amounted to £1,486 million in February 2011 compared to £1,174 million in February 2010.
- Net lending by mutuals in February 2011 was -£614 million compared -£864 million in February 2010.
- Mortgage approvals by mutuals in February 2011 were £1,693 million compared to £1,379 million in February 2010.
- Savings balances at mutuals increased by £359 million in February 2011 compared to an increase of £807 million in February 2010.
- There was a net receipt of £150 million into savings accounts held with mutuals in February 2011 compared to a net receipt of £623 million in February 2010.
- Mutuals had a net withdrawal of £68 million from Cash ISAs in February 2011 compared to a net withdrawal of £109 million in February 2010.
