BSA: July mortgage lending and savings up at building societies and other mutuals
The increase in mortgage lending by building societies and other mutual lenders continued in July with gross lending of £3.1 billion, up by 44% compared to the same month last year. Lending was also up 14% on last month. Mutuals took a 24% market share of gross lending in July, up from 17% in July 2011, and had a 21% share of lending in the first seven months of the year.
The number of mortgages approved by mutuals, which represent the future completions pipeline, was up 32% in July compared to the same month last year. Mutual lenders approved 26% of all mortgage loans in the UK in July, and 24% in the first seven months of the year.
Retail savings balances at mutuals rose by £1,247 million in July 2012, compared to an increase of £575 million in the same month last year. After interest credited is removed there was a net receipt of £1,058 million in July.
Commenting, Adrian Coles, Director-General of the Building Societies Association, said:
"Mutuals are currently enjoying a sustained increase in lending activity, and an increase in deposits from savers.
"Lending activity by mutuals has been growing strongly on a year on year basis for some time now, and in July gross lending rose again by a healthy 44%. At the same time lending by banks fell by 9% in July. As a result mutuals continue to take market share, up to 24% in July, well above the 17% figure for the same month on 2011. Approvals by mutuals were also up in the month and this means that this trend of increased lending is likely to continue. The Funding for Lending scheme has not influenced these figures and may not start to for a number of months yet.
"Savings balances at mutuals increased by over £1 billion in July, up considerably compared to the same month last year and June 2012. Whilst this is positive news for mutuals, savings flows are quite variable month by month, and it is difficult to draw firm conclusions from one month's figures. Growth in consumer prices is still running above growth in earnings and so saving for many households remains challenging."
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Contact:
Hilary McVitty / Victoria Bamber
Tel: 020 7520 5926 / 5927
Email: hilary.mcvitty@bsa.org.uk/victoria.bamber@bsa.org.uk
Notes for Editors:
Mutual statistics July 2012 – data is not seasonally adjusted.
| Mutuals | July 2012 | July 2011 |
| Gross Lending | £3,053m | £2,115m |
| Net Lending | £1,031m | -£157m |
| Mortgage Approvals (£) | £2,786m | £1,891m |
| Mortgage Approvals (No) | 25,496 | 19,287 |
| Change in Savings Balances | £1,247m | £575m |
| Net Receipts – All Savings | £1,058m | £387m |
| Net Receipts – ISAs | -£321m | -£220m |
Additional data tables are attached.
1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 47 UK building societies. Mutual lenders and deposit takers have more than 32 million customers, total assets of over £375 billion and, together with their subsidiaries, hold residential mortgages of nearly £240 billion, 19% of the total outstanding in the UK. They hold more than £250 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for 34% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
2. Data in this release relates to 47 building societies and five other mutual deposit taking and lending institutions in the UK.
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. Follow the BSA on Twitter @BSABuildingSocs
Katie Wise
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
Twitter: @BSABuildingSocs
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