BSA: September mortgage approvals at mutuals up 33%
Against the backdrop of continued economic uncertainty, building societies and other mutuals continue to support homebuyers and savers.
Both the value of mortgage approvals and gross lending in September 2011 are at their highest level for any month since the BSA started reporting on the current basis in January 2010. Savings balances in September grew by £0.6 billion, compared to an outflow of the same amount in September last year.
Lending:
£2.5 billion of mortgages approved by mutual lenders in September, up 22% on August 2011 (£2.1 billion), and up 33% on September 2010 (£1.9 billion).
18% rise in mortgage approvals for the first nine months of 2011 at £17.1 billion (£14.5 billion, January – September 2010).
4% rise in gross mortgage lending in September, up to £2.3 billion from £2.2 billion in September 2010.
14% increase in gross lending for the first nine months of 2011 at £16.7 billion (£14.7 billion, January – September 2010).
Savings:
Savings balances were up £0.6 billion in September 2011, compared to a decrease of £0.6 billion in September 2010.
Excluding interest credited to accounts, building societies and other mutual deposit takers had net receipts of £0.3 billion in September 2011, compared to a net withdrawal of £0.8 billion in September 2010.
In the first nine months of 2011, savings balances held with mutuals have increased by £2.7 billion, compared to a decrease in balances of £0.9 billion in the same period in 2010.
Commenting, Adrian Coles, Director-General of the Building Societies Association, said:
"Although the UK economic outlook remains challenging, mutual lenders continue to support homebuyers by providing attractive mortgage products. This has led to a 33% increase in mortgage approvals in September, compared to the same time last year. Mortgage approvals indicate how gross lending will change in coming months. Over the first three quarters of the year gross lending by mutuals was up 14% on the previous year, and the growth in approvals suggests that this trend will continue into the final quarter of 2011."
"Savings balances held with mutual deposit takers have risen by £1.6 billion over the third quarter of 2011, in stark contrast to the decrease of £2.3 billion for the same period in 2010. Part of the reason for this improvement is likely to be the recent stock market volatility causing investors to seek a more stable home for their money."
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Contacts
Hilary McVitty and Rachel Wylie
Tel: 020 7520 5926 / 5905
Email: hilary.mcvitty@bsa.org.uk / rachel.wylie@bsa.org.uk
Notes to editors
1. Mutual statistics September 2011 – further detailed statistical tables accompany this press release
Data is not seasonally adjusted.
. Mutuals' gross lending amounted to £2,261 million in September 2011 compared to £2,176 million in September 2010.
. Net lending by mutuals in September 2011 was -£17 million compared -£11 million in September 2010.
. Mortgage approvals by mutuals in September 2011 were £2,540 million compared to £1,912 million in September 2010.
. Savings balances at mutuals increased by £608 million in September 2011 compared to a reduction of £568 million in September 2010.
. There was a net receipt of £333 million to savings accounts held with mutuals in September 2011 compared to a net withdrawal of £819 million in September 2010.
. Mutuals had a net withdrawal of £172 million from cash ISAs in September 2011 compared to a net receipt of £194 million in September 2010.
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 35% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
3. Data in this release relates to 48 building societies and five other mutual deposit taking and lending institutions. The Norwich & Peterborough completes its merger with Yorkshire Building Society on 1 November 2011.
4. 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
Katie Wise (née Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
Tel: 020 7520 5904
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk
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