Mutuals lend 8% more in May
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Mutuals were lending 8% more in May than the previous month, according to the Building Societies Association.
The BSA Property Tracker reveals the total lending grew from £1,399m in April to £1,508m in May.
Approved loans not yet completed amounted to £1,571m, more than the £1,527m approved in April.
Adrian Coles, director-general of the BSA, says: “Confidence in the housing market remains relatively subdued.
“The BSA’s June Property Tracker survey found that just 45% people thought now was a good time to buy, due to concerns about the uncertain economic outlook and in their ability to raise a deposit. As such, lending activity is likely to remain at similar levels in the months to come.”
But savings balances deposited with mutuals reduced by £373m in May, compared to an increase of £929m in April.
Excluding the interest added to accounts in the month, there was a net withdrawal from mutuals of £576m, compared to a net receipt of £537m in April.
Coles adds: “Banks also reported an outflow in May. It is perhaps unsurprising that there will be outflows in some months given the low level of the Bank Rate and as savers look to pay down debts or seek greater returns from higher risk investments.”
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