View more on these topics

Building societies’ mortgage lending drops £1.27bn

Gross mortgage lending by building societies fell by £1.27bn during the course of 2008, the latest statistics from the Building Societies Association reveal.

Building society gross lending for December 2008 was at £2.4bn, compared to £3.67bn the previous December.

Net lending by building societies for December was £324m, a massive drop from the £1.01bn recorded for December 2007.

Approvals fell to £836m last month compared to £2.98bn for the previous year.

Net receipts grew to £897m in December, up from £636m in November but markedly down from £1.89bn from 2007.

Adrian Coles, director-general of the BSA, says: “Activity in the housing market remains depressed, and as a result the amount of mortgage lending in December was low.

“House prices are widely expected to fall further and unemployment is rising, so potential buyers remain cautious and are staying out of the market as they wait for it to stabilise.”

Recommended

DWP to be grilled over SMI reforms

A House of Lords Committee is set to question the Department for Work and Pensions over changes to the way Support for Mortgage Interest is paid.

Halifax pulls ASU cover for brokers

Halifax Intermediaries General Insurance has withdrawn all of its
accident and sickness and unemployment cover through mortgage brokers.

Northern Rock back in business

Nationalised lender Northern Rock has returned to the mortgage market with fixed rate deals marked down 1% from two weeks ago, figures from mform.co.uk reveal.

B&B appoints firms to handle waiver business

Bradford & Bingley has appointed The Mortgage Business and The Buy to Let Business to handle borrowers who take up its waiver on early repayment charges and redeem their mortgages.

Newsletter

News and expert analysis straight to your inbox

Sign up