Gross mortgage lending in December 2010 mirrored the total of the same period of 2009.

December’s figure meant that gross mortgage lending by mutuals in 2010 totalled £20.4bn, up from 2009’s low of £18.6bn. However, it remains far removed from the high of 2006, when lending by mutuals reached £52.6bn.

Net lending for December 2010 was -£379m compared to -£385m the previous month.

In addition, BSA figures showed that mortgage approvals by mutual lenders were £1.2bn in December, down from £1.9bn in November.

Paul Broadhead, head of mortgage policy at the BSA, said: “Gross lending by mutuals was slightly lower in December compared to November. However, lending has remained relatively stable in second half of 2010. December is typically a quieter month for the mortgage market and a drop in approvals at the end of the year is not uncommon.

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“It is likely, however, that the adverse weather conditions in the period contributed to a more significant decline in approvals than one would normally expect.”

Meanwhile, savings balances held by mutuals increased by £1.5bn in December 2010, following an increase of £625m in November.

The BSA said that, excluding interest credited to accounts, mutuals had a net receipt of £1.1bn in December compared to a net receipt of £432m in November.

Total balances at mutuals increased by £154m in 2010.

Brian Morris, head of savings policy at the BSA, said: “Savings balances at mutuals increased for a second consecutive month in December giving mutuals a strong end to the year.

“However, households face a challenging year ahead and may well need to dip into or defer savings to supplement their incomes. Growth of household savings balances is therefore likely to remain relatively subdued in 2011.”