BSA - Mortgage lending by mutuals picks up in May

BSA – Mortgage lending by mutuals picks up in May

BSA – Mortgage lending by mutuals picks up in May

Gross mortgage lending by mutual lenders in May was £1,508 million, 8% greater than the £1,399 million lent in April. Mortgage loans approved (but not yet made) in May were £1,571 million, similar to the £1,527 million approved in April.

Commenting on the figures, Adrian Coles, Director-General of the BSA,
said:

“Mortgage lending by mutuals was slightly higher in May than in April, but confidence in the housing market remains relatively subdued.
The BSA’s June Property Tracker survey found that just 45% of 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.”

In the savings market, savings balances deposited with mutuals reduced by £373 million in May, compared to an increase of £929 million in April. Excluding the interest added to accounts in the month, there was a net withdrawal from mutuals of £576 million, compared to a net receipt of £537 million in April.

Commenting on the savings figures, Mr Coles said:

“Having increased in each of the previous three months, savings balances at mutuals fell in May. 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.”

Mutual statistics May 2010

Data below are not seasonally adjusted.

? Mutuals’ gross lending amounted to £1,508 million in May 2010 compared to £1,399 million in April.
? Net lending by mutuals in May 2010 was -£588 million compared to
-£924 million in April.
? Approvals by mutuals in May 2010 were £1,571 million compared to
£1,527 million in April.
? Savings balances at mutuals reduced by £373 million in May 2010, compared to an increase of £929 million in April.
? Mutuals had a net withdrawal of £576 million in May 2010 compared to a net receipt of £537 million in April.
? Mutuals had a net withdrawal of £48 million from cash ISAs in May 2010 compared to a net receipt of £668 million in April.

Important media note: For data relating to January 2010 onwards, the Bank of England has combined figures for building societies and mutually owned banks. This new data is reported as the ‘mutual sector’.
Previous data will not be restated and therefore it is not possible to make comparisons with previous years. For more information about this change please see www.bsa.org.uk/feature/mutual_stats.htm

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Notes to Editors

1.Detailed statistical tables accompany this press release.

2. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 50 UK building societies.
Mutual lenders and deposit takers have total assets of over £370 billion and, together with their subsidiaries, hold residential mortgages of over £235 billion, 19% of the total outstanding in the UK. They hold almost £250 billion of retail deposits, accounting for just under 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.

3. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk

4. The latest BSA Property Tracker can be viewed here www.bsa.org.uk

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Rachel Le Brocq
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ

Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk