BSA: Mortgage lending holds steady at mutuals in August
Gross mortgage lending by mutuals was £2.0 billion in August, which is unchanged from the £2.0 billion lent in July. Mortgage approvals made in August amounted to £1.8 billion, slightly lower than the £1.9 billion in July.
Commenting on the figures, Paul Broadhead, Head of Mortgage Policy at the BSA, said:
“Both gross lending and mortgage approvals by mutuals in August broadly matched the year-high figures recorded in July, which is encouraging, particularly when assessed against wider industry trends. However, the market continues to show falling levels of demand and a flattening out of house price growth. With continued economic uncertainty, lending activity could fall back if buyer interest continues to show signs of weakness.”
Savings balances held at mutuals decreased by £699 million in August, following a decrease of £1.0 billion in July. Excluding interest credited to accounts £1.0 billion was withdrawn in August, compared to £1.3 billion in July.
Commenting on the savings data, Brian Morris, Head of Savings Policy at the BSA, said:
“Households are facing a difficult economic environment which helps explain the withdrawal from savings accounts seen in August. Consumer prices are outpacing growth in average earnings and unemployment remains elevated. Also, the low Bank Rate is making it difficult to attract people who can afford to save when potentially higher, if more risky, returns are possible in the equity markets.”
Mutual statistics August 2010
Data below are not seasonally adjusted.
. Mutuals’ gross lending amounted to £1,972 million in August 2010 compared to £1,995 million in July.
. Net lending by mutuals in August 2010 was -£284 million compared to -£379 million in July.
. Approvals by mutuals in August 2010 were £1,780 million compared to £1,940 million in July.
. Savings balances at mutuals decreased by £699 million in August 2010, compared to a decrease of £1,034 million in July.
. Mutuals had a net withdrawal from savings accounts of £1,023 million in August 2010 compared to a net withdrawal of £1,306 million in July.
. Mutuals had a net withdrawal of £43 million from Cash ISAs in August 2010 compared to a net withdrawal of £129 million in July.
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
To read the full Funding press release please click here
To read the full Lending pres release please click here
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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 49 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 21% 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 Paul Broadhead and Brian Morris are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Contact: Rachel Le Brocq – 020 7520 5905 / rachel.lebrocq@bsa.org.uk
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