In October, gross lending by building societies and other mutuals reached £2.3 billion, its highest level for any month since the BSA started reporting on the current basis (in January 2010), and 20 per cent higher than in the same month last year. Savings balances held with building societies and other mutuals grew by £0.4 billion in October, compared to an outflow of £1.1 billion in October last year.
- 20 per cent rise in gross mortgage lending in October, up to £2.3 billion from £2.0 billion in October 2010.
- 15 per cent increase in gross lending for the first ten months of 2011 at £19.1 billion (£16.6 billion, January – October 2010).
- £2.0 billion of mortgages approved by mutual lenders in October, up 14 per cent on October 2010 (£1.8 billion).
- 18 per cent rise in mortgage approvals for the first ten months of 2011 at £19.1 billion (£16.2 billion, January – October 2010).
Savings:
Commenting, Adrian Coles, director-general of the Building Societies Association, said: “With the Government recently announcing policies that highlight the importance of the housing market to the UK economy, building societies and other mutual lenders continue to play their part supporting homebuyers. So far this year, mutual lenders have lent 15 per cent more than in the same period in 2010, whereas other lenders have so far lent 1 per cent less than last year.
“Despite the ongoing squeeze on household finances, mutual deposit takers have seen steady savings inflows in recent months, in contrast to the outflows this time last year. This improvement is likely to be because of the cash savings accounts on offer at mutuals which provide security that equity investments cannot in these uncertain times.”
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