Mortgage approvals by mutuals increase in February

Nia Williams

March 29, 2011

Gross mortgage lending by mutuals was £1.5 billion in February, compared to £1.2 billion in February 2010.

Commenting on the mortgage figures, Adrian Coles, director-general of the Building Societies Association, said: “Mortgage lending by mutuals continues to grow from the low levels seen last year. The good financial results released recently by many mutual lenders show that they are strongly placed to offer attractive products to homebuyers. However, activity in the housing market remains at levels that are subdued relative to previous periods, as potential buyers continue to have concerns about the economic outlook.”

Savings balances held at mutuals increased by £359 million in February, down on the £807 million increase in February 2010 but an improvement on the decrease in balances of £424 million in January this year.

Mutual statistics for February 2011:

• Mutuals’ gross lending amounted to £1,486 million in February 2011 compared to £1,174 million in February 2010.

• Net lending by mutuals in February 2011 was -£614 million compared -£864 million in February 2010.

• Mortgage approvals by mutuals in February 2011 were £1,693 million compared to £1,379 million in February 2010.

Sign up to our daily email