Money News
The the tide of movement towards saving after the summer's crunch on credit continued during the latter part of 2007, according to figures out today from the Building Societies Association (BSA). It reported that the inflow of savings to the country's mutuals in January - at £597 million - was the largest recorded since 1997.
Commenting on the figures, Adrian Coles, Director General of the BSA said, "January figures often show a net outflow as families pay off Christmas bills, with seven in the previous 10 years seeing net withdrawals. Placed in this context, the savings inflow in January was particularly high."
He added: "The attractive savings products that societies are offering, coupled with the volatility of share prices, have attracted savers into societies, while the continuing economic uncertainty is encouraging further saving."
On the other side of the coin, gross mortgage lending by building societies in January was around the same level as in January 2007. Although down year-on-year, net lending was stronger in January than in the second half of 2007, although mortgage approvals have remained relatively subdued. Mr Coles said that this suggests a further cooling in mortgage lending as 2008 progresses.
29 February 2008 © Moneyextra.com
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