BSA: Highest February lending on record

BSA: Highest February lending on record

BSA: Highest February lending on record

* Building society gross advances amounted to £4,214m in February 2007, compared to £3,183m in February 2006.
* Net Advances were £1,292m in February 2007, versus £629m in February 2006.
* Approvals were £4,917m in February 2007 up from £3,646m in February 2006.
* Building societies had net receipts of £781m in February 2007 compared to net receipts of £868m in February 2006.
* Building Society net receipts to cash ISAs were £123m in February 2007, compared to £129m in February 2006.

Commenting on the mortgage market, Adrian Coles, Director-General said:
“Yet again building societies saw record lending in February, with gross lending the highest ever recorded for that month. Approvals (loans agreed but not yet made) were also the highest February on record.

“These are strong figures, but we may be seeing the peak of the market. The recent rate rises are still to work through fully into the mortgage market. Therefore, mortgage lending figures might become a little more subdued as the year progresses. However, a reasonably strong economic outlook, especially continuing robust employment, should ensure that there is still demand for mortgages, just not at record highs.”

Commenting on the savings side, Mr Coles said:

“Savings into building societies started strongly in 2006. Although down year on year, the seasonally adjusted figure of £874m in February 2007 compares well to the monthly average over the previous 3 years of £755m. So far, the rate rises appear to be having a limited effect in attracting extra saving. However, we may see people switching to the safety of cash accounts over the next few months after the falls in stock markets in March.”

~ ENDS ~

Notes to Editor
1. The Building Societies Association (BSA) represents all 60 building societies in the United Kingdom. Building societies have total assets in excess of £305 billion and hold residential mortgages of over £200 billion, approximately 18% of the total outstanding in the UK. Societies hold over £190 billion of retail deposits, accounting for about 19% of all such deposits in the UK. Building societies also account for over 37% of all cash ISA balances. Building societies employ almost 50,000 full and part-time staff and operate through around 2,150 branches.

2. Photographs of Adrian Coles are available from the BSA press office http://www.bsa.org.uk/mediacentre/contacts/spokespeople or Headline Money http://www.headlinemoney.co.uk/Home.asp?nSection=1