Mortgage lending by mutuals grows 10% in September

Gross mortgage lending by mutuals was £2.2 billion in September, which is ten per cent greater than the £2.0 billion lent in August.

Those looking for the best mortgage rates will be interested to hear that mortgage approvals made in the month amounted to £1.9 billion, a slight increase on August figures.

Adrian Coles, director-general of the Building Societies Association BSA, said: "Although the mortgage market remains relatively weak, mutual lenders have seen a slight increase in lending over recent months."

Figures also revealed that savings balances held at mutuals decreased by £569 million in September indicating that the outlook still remains challenging for those looking for the best savings rates to make their money work hard for them.

Mr Coles commenting on the savings data said that the labour market remains weak, causing earnings to grow at a rate below current price inflation making it hard for households to save.

Recent figures from the Council of Mortgage Lenders CML found that gross lending in the third quarter of 2010 was an estimated £37.4 billion, a nine per cent increase from the second quarter and down four per cent from the third quarter of 2009.
 

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2010-11-01 12:16:40 © Moneyextra.com