Gross mortgage lending up 40%: BSA
Latest figures and commitment to the Funding for Lending scheme suggest mutuals are “committed” to lending.
Gross mortgage lending by building societies and other mutual lenders was £3bn in August, up 40 per cent compared to the same month last year.
According to data from the Building Societies Association, mutuals took a 23 per cent market share of gross lending in August, up from 16 per cent in August 2011, and a 21 per cent share of lending in the first eight months of the year.
Retail savings balances at mutuals rose by £1.16bn in August 2012, compared to an increase of £393m in the same month last year. After interest credited is removed there was a net receipt of £418m in August.
Adrian Coles, director-general of the Building Societies Association, said: “These figures show that mutuals are committed to lending to homebuyers, and of the initial 13 firms signed up to the Bank of England’s Funding for Lending scheme, six are building societies. We expect more building societies to sign up in coming months, though it will take some time for the funds drawn from the scheme to feed into new lending.
“Savings balances at mutuals increased by over £1bn in August for a second consecutive month, and were up significantly compared to August last year. With consumer price inflation on a downwards trend, the pressure on household finances eased somewhat allowing more money to be saved. The changes in deposits may also reflect consumers switching their accounts over to mutuals over the past two months as people opt for better service and a more ethical way of banking.”