Mortgage News
Mutual mortgage approvals jump 29% in March
Mutuals approved £2.1bn worth of mortgages in March 2011, up 29% on the £1.7bn approved in March and February 2010, according to the Building Societies Association (BSA).
Gross lending by mutuals totalled £1.7bn in March 2011, up 8% compared to £1.6bn in March 2010, and up from £1.5bn of lending in February this year.
Adrian Coles, director-general of the BSA, said: “Across the first quarter of 201, mortgage approvals by mutuals were 28% greater than in the same period a year earlier.
“However, these are increases from very low levels and compared to previous times, activity in the mortgage market remains subdued. This is largely because economic uncertainty continues to affect confidence in the housing market.”
Savings balances held at mutuals increased by £273m in March, compared to an increase of £534m in March 2010.
After interest credited is excluded, mutuals had a net withdrawal of £604m in March this year.
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Coles added: “Savings balances at mutuals grew in March, although once interest credit is excluded, there was a net withdrawal from savings accounts.
“Although interest rates may rise later in the year which may encourage more saving, household finances continue to face significant pressures. Households’ ability to save is under strain from above target consumer price inflation, which is higher than the rate of wage growth, and the recently implemented austerity measures.”