FTAdviser.com

Societies' mortgage lending stabilises, but at low levels

Story by: Anya Diaz-Cebreiro
Magazine: FinancialAdviser
Published Monday , June 29, 2009

Gross mortgage lending by building societies stabilised in May, but at extremely low and depressed levels that were 57 per cent less than a year ago.

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According to the Building Societies Association (BSA), lending for the 12 months to the end of May 2008 totalled £3.53bn, compared with this year's total of almost £1.56bn.

Adrian Coles, director-general of the BSA, said: "Gross mortgage lending by building societies was £1,515m in May 2009, a similar level to the previous two months, but still 57 per cent less than gross lending in May last year.

"Building society mortgage approvals were also at similar levels to recent months. However, the £1,607m of approvals in May were still about 35 per cent less than the value of mortgages approved in May last year.

"Therefore, while the mortgage market appears to have recovered slightly from the start of the year, levels of activity remain depressed."