Lending by buildings societies and mutuals rises again

2nd Mar 2012

There was another rise in mortgage lending in the UK in January, according to the latest figures, with both building societies and other mutual lenders boosting approvals.

Overall, mortgage lending was up 32 per cent on January 2011, while mortgage approvals rose by 54 per cent, meaning £1.7 billion of mortgages were approved throughout the month, the Building Societies Association (BSA) figures reveal.

Gross mortgage lending rose from £1.4 billion in January 2011 to £1.9 billion at the start of 2012, providing an indication that the market is in good shape, noted Adrian Coles, director-general of the BSA.

"New lending and approvals for house purchase picked up across the market in January, perhaps in part due to first-time buyers taking advantage of the stamp duty holiday before it ends in March," he explained.

Mr Coles added said it was good to see that lending activity by mutuals was up significantly in January compared to the same month last year, which continues the trend of increased lending by the mutual sector seen throughout 2011.

It comes after the Bank of England revealed that lending secured on dwellings rose by £1.6 billion in January, compared to the previous six-month average of £0.8 billion.

The three-month annualised growth rate increased by 0.1 percentage points to 1.1 per cent, while the 12-month growth rate was unchanged at 0.8 per cent.ADNFCR-1286-ID-801308408-ADNFCR

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