Mortgages to the value of £1.7 billion were approved by mutual lenders in February. This is 23 per cent 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.
Commenting on the mortgage figures, 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.”
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