Mortgage lending by mutuals up 20% in October

Savings balances held with building societies and other mutuals grew by £0.4 billion in October, compared to an outflow of £1.1 billion in October last year.

Lending:
 •20% rise in gross mortgage lending in October, up to £2.3 billion from £2.0 billion in October 2010. 
•15% increase in gross lending for the first ten months of 2011 at £19.1 billion (£16.6 billion, January – October 2010).
•£2.0 billion of mortgages approved by mutual lenders in October, up 14% on October 2010 (£1.8 billion).
•18% rise in mortgage approvals for the first ten months of 2011 at £19.1 billion (£16.2 billion, January – October 2010)

Savings:
•Savings balances were up £0.4 billion in October 2011, compared to a decrease of £1.1 billion in October 2010.
•Excluding interest credited to accounts, building societies and other mutual deposit takers had net receipts of £0.2 billion in October 2011, compared to a net withdrawal of £1.3 billion in October 2010.
•In the first nine months of 2011, savings balances held with mutuals have increased by £3.2 billion, compared to a decrease in balances of £2.0 billion in the same period in 2010.

Commenting, Adrian Coles, Director-General of the Building Societies Association, said:

“With the Government recently announcing policies that highlight the importance of the housing market to the UK economy, building societies and other mutual lenders continue to play their part supporting homebuyers. So far this year, mutual lenders have lent 15% more than in the same period in 2010, whereas other lenders have so far lent 1% less than last year.

 “Despite the ongoing squeeze on household finances, mutual deposit takers have seen steady savings inflows in recent months, in contrast to the outflows this time last year.  This improvement is likely to be because of the cash savings accounts on offer at mutuals which provide security that equity investments cannot in these uncertain times.”

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