Building Society Mortgage Lending Increased Sharply in November 2011

Looking for the latest mortgage and financial news, along with expert opinions and advice on the current mortgage markets?
Look no further…

1 Step 1
FormCraft - WordPress form builder

 The Building Societies Association (BSA) revealed this week that mortgage lending by mutuals increased by nearly a quarter in November last year, giving more people the opportunity to become householders. The amount of gross lending by building societies and other mutuals came to £2.5 billion in total during that month a 24 per cent increase compared to the £2 billion lent in November 2010, the BSA said. This represents a new high water mark since January 2010, when the association began reporting lending under current arrangements. From January to November last year, the BSA reported a 16 per cent increase in gross mortgage lending, with a total sum of £21.5 billion lent. This compares to just £18.6 billion being lent in the first 11 months of 2010. Last November also saw a 13 per cent increase in mortgage approvals, compared to the same period the previous year. During that month the total amount of mortgage approvals were valued at £1.9 billion. Over the first 11 months of 2011, some £12.3 billion worth of mortgages were approved by mutuals, a 17 per cent increase compared to the £18.1 billion approved in January-November 2010. BSA director-general Adrian Coles commented: The New Year has seen some excellent mortgage products go on sale from mutuals with a return to some offering higher loan to value mortgages. These are encouraging trends against rather discouraging developments in the wider economy.” “2011 has been a difficult year for savers who have faced a substantial squeeze on their incomes from rising living costs, relatively low wage growth and very low interest rates. Yet in recent months mutuals have seen a net inflow into savings accounts as savers look for the security and certainty which equity markets lack. Households may also be delaying big ticket purchases to put money aside for a rainy day.”