Mutuals' lending up in 2011

Gross mortgage lending by mutuals was £1.4 billion in January 2011, which is a 38 per cent increase than the £1 billion lent in January 2010.

Adrian Coles, director-general of the Building Societies Association BSA, noted that the 2011 results showed a improvement on 2010's figures due to the termination of the last government's stamp duty holiday that ceased at the end of 2009.

Figures from the BSA showed that the balance of savings held by mutuals fell by £424 million in January 2011 which compares to a reduction of £467 million in January 2010.

Excluding interest credited to accounts, mutuals had a net withdrawal of £697 million in January compared to a net withdrawal of £741 million in January 2010.

Commenting on the figures, Mr Coles said: "It is common for savings balances to fall in January as households begin to repay debt accumulated over the Christmas period."

He added that it is difficult for many households to make use of the best savings interest rates as the cost of living has increased and many are using disposable income to cover costs.
 

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2011-03-02 13:25:01 © Moneyextra.com