Mortgage approvals up 23% by mutuals year-on-year
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Mortgages to the value of £1.7bn were approved by mutual lenders in February, 23% higher than the £1.4bn approved in February last year.
Gross mortgage lending by mutuals was £1.5bn in February, compared to £1.2bn in February 2010, while lending in February 2011 was -£614m compared -£864m in February 2010.
Adrian Coles, director-general of the Building Societies Association, says: “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 £359m in February, down on the £807m increase in February 2010 but an improvement on the decrease in balances of £424m in January this year.
Coles, says: “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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