View more on these topics

Building societies see 15% rise in gross lending

Gross lending by building societies rose by 15% in December to £1.8bn, figures from the Building Societies Association show.

But for 2009 as a whole gross lending was half the levels seen in 2008, going from £37.5bn in 2008 to £18.6bn last year.

Paul Broadhead, head of mortgage policy at the BSA, says:“Whilst it is encouraging to see an increase in gross lending at the end of the year when activity would typically decline, we believe it is likely that this rise can be attributed to a rush from buyers keen to complete transactions before the year end in order to beat the removal of the stamp duty holiday.

“Despite this rise, total gross lending in 2009 was only half of that in 2008 and it is likely to remain at low levels until funding conditions improve.”

Net lending by building societies in December fell to -£283m from a positive £273m at the same time in 2008.

Approvals in December rose to £1.04bn from £901m a year earlier.

Deposits held at building societies increased by £15m in December.

Excluding interest credited to accounts, building societies had a net withdrawal of £400m in December.

Total balances at building societies reduced by £1bn in 2009 compared to an increase of £19bn in 2008.



CML calls for focus on mortgage funding

The Council of Mortgage Lenders has urged the govenment for a clearer strategy on mortgage funding while accusing the Financial Services Authority of over-reacting on income verification.

The cost of regulation could be going up

The building societies lending and savings figures released by the Building Societies Association on Monday show that gross mortgage lending jumped 15% in December, compared with November.


LAST WEEK’S WINNER, JOSEPH LOUGHBOROUGH, LONDON & COUNTRY   “Sadly, the mortgage spin-off of Miami Vice never took off.”

Who cares?

By Tracey Dickson, marketing consultant There are almost 7 million carers in the UK – that’s around 10 per cent of the population who provide unpaid care for a disabled, seriously ill or older loved one.1 But according to a report from the charity Carers UK, 20 per cent of people providing 50 hours or more of care […]


News and expert analysis straight to your inbox

Sign up