Mortgage approvals and gross lending in September 2011 in the mutual sector are at their highest level for any month since the BSA started reporting on the current basis in January 2010.
£2.5 billion of mortgages were approved by mutual lenders in September, up 22 per cent on August 2011 (£2.1 billion), and up 33 per cent on September 2010 (£1.9 billion).
18 per cent rise in mortgage approvals for the first nine months of 2011 at £17.1 billion (£14.5 billion, January – September 2010).
Four per cent rise in gross mortgage lending in September, up to £2.3 billion from £2.2 billion in September 2010.
14 per cent increase in gross lending for the first nine months of 2011 at £16.7 billion (£14.7 billion, January – September 2010).
Commenting, Adrian Coles, Director-General of the Building Societies Association, said: “Although the UK economic outlook remains challenging, mutual lenders continue to support homebuyers by providing attractive mortgage products. This has led to a 33 per cent increase in mortgage approvals in September, compared to the same time last year. Mortgage approvals indicate how gross lending will change in coming months. Over the first three quarters of the year gross lending by mutuals was up 14 per cent on the previous year, and the growth in approvals suggests that this trend will continue into the final quarter of 2011.”
“Savings balances held with mutual deposit takers have risen by £1.6 billion over the third quarter of 2011, in stark contrast to the decrease of £2.3 billion for the same period in 2010. Part of the reason for this improvement is likely to be the recent stock market volatility causing investors to seek a more stable home for their money.”
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