Mortgage lending by mutuals grows 10% in September

Gross mortgage lending by mutuals was £2.2 billion in September, which is 10% greater than the £2.0 billion lent in August, according to the BSA.

Related topics:  Mortgages
Millie Dyson
29th October 2010
Mortgages
Mortgage approvals made in September amounted to £1.9 billion, a slight increase on the £1.8 billion approved in August.
 
Commenting on the figures, Adrian Coles, Director-General of the BSA, said:

“Although the mortgage market remains relatively weak, mutual lenders have seen a slight increase in lending over recent months. However, recent reports of house price declines are likely to reduce demand for house purchase, and the effects of the Spending Review may also weigh on buyers’ confidence.”

Savings balances held at mutuals decreased by £569 million in September, following a decrease of £699 million in August.  Excluding interest credited to accounts £819 million was withdrawn in September, compared to £1,023 million in August.

Commenting on the savings data, Adrian Coles said:
 
“The economic outlook remains challenging for households. The labour market remains weak, causing earnings to grow at a rate below current price inflation. It is therefore particularly hard in the current low interest rate environment to attract households to save.”
 
Mutual statistics September 2010
 
- Mutuals’ gross lending amounted to £2,176 million in September 2010 compared to £1,973 million in August.
 
- Net lending by mutuals in September 2010 was -£12 million compared to -£278 million in August.
 
- Mortgages approvals by mutuals in September 2010 were £1,912 million compared to £1,781 million in August.
 
- Savings balances at mutuals decreased by £569 million in September 2010, compared to a decrease of £699 million in August.
 
- Mutuals had a net withdrawal from savings accounts of £819 million in September 2010 compared to a net withdrawal of £1,023 million in August.
 
- Mutuals had a net receipt of £194 million into Cash ISAs in September 2010 compared to a net withdrawal of £43 million in August.
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