BSA: Mutuals’ January lending up on 2010
Gross mortgage lending by mutuals was £1.4 billion in January 2011, which is 38% greater than the £1.0 billion lent in January 2010. Mutuals approved £1.1 billion worth of loans in January which is up 37% compared to the £0.8 billion in January 2010.
Commenting on the figures, Adrian Coles, Director-General of the Building Societies Association, said:
“Mortgage lending by mutuals in January was up year on year, although the comparable figure for January last year was depressed, as it followed the termination of the last Government’s stamp duty holiday that ceased at the end of 2009. On a seasonally adjusted basis, mutuals’ mortgage lending and approvals figures for January were broadly similar to the averages over the preceding six months.”
On the savings side, balances held with mutuals fell by £424 million in January 2011. This compares to a reduction in balances of £467 million in January 2010. Excluding interest credited to accounts, mutuals had a net withdrawal of £697 million in January compared to a net withdrawal of £741 million in January 2010.
Commenting on the figures, Mr Coles said:
“It is common for savings balances to fall in January as households begin to repay debt accumulated over the Christmas period. However, with the prices faced by consumers rising at a rate above the growth of earnings, partly because of the January rise in the VAT rate to 20%, household finances remain stretched, so that for many it is difficult to increase savings.”
Mutual statistics January 2011
Data below are not seasonally adjusted.
. Mutuals’ gross lending amounted to £1,433 million in January 2011 compared to £1,039 million in January 2010.
. Net lending by mutuals in January 2011 was -£526 million compared -£838 million in January 2010.
. Mortgage approvals by mutuals in January 2011 were £1,123 million compared to £820 million in January 2010.
. Savings balances at mutuals decreased by £424 million in January 2011 compared to a decrease of £467 million in January 2010.
. Mutuals had a net withdrawal from savings accounts of £697 million in January 2011 compared to a net withdrawal of £741 million in January 2010.
. Mutuals had a net withdrawal of £242 million from Cash ISAs in January 2011 compared to a net withdrawal of £180 million in January 2010.
~ Ends ~
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 48 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 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
Rachel Wylie (née 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
Join us at the BSA Annual Conference in Birmingham, 4 & 5 May 2011
www.bsaconference.org
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