BSA: Gross lending by mutuals up 20% in May
Wednesday, 29 June 2011 10:54 AM
Gross lending by mutuals totalled £1.8 billion in May 2011, up 20% compared to the £1.5 billion in May 2010. Mortgage approvals by mutuals, also £1.8 billion, were up by 15% compared to the £1.6 billion approved in May last year.
Commenting on the lending figures, Adrian Coles, Director-General of the Building Societies Association, said:
“Both gross lending and approvals by mutuals have been stronger in the first five months of 2011 compared to the same period last year. Although activity in the market is still considerably weaker than pre-crunch levels, mutuals have been increasing their mortgage lending and offering competitive products that continue to feature in the best-buy tables.”
Savings balances held with mutuals fell by £418 million in May 2011, compared to a reduction of £373 million in May 2010. When the interest credited to accounts is excluded, mutuals had a net withdrawal of £613 million, compared to a net withdrawal of £576 million in May last year.
Mr. Coles said:
“Following a strong April inflow, savings balances at mutuals fell in May, in common with other private sector deposit-takers. It seems likely that NS&I’s index-linked products attracted much of the money deposited in this period. The UK economy has been treading water for the past six months, and with stubbornly high growth in consumer prices and relatively low growth in wages, consumers have been finding it difficult to add to their savings. Some consumers will be relying on their existing savings to supplement their incomes during this difficult time.”
Mutual statistics May 2011
Data below are not seasonally adjusted.
• Mutuals’ gross lending amounted to £1,811 million in May 2011 compared to £1,507 million in May 2010.
• Net lending by mutuals in May 2011 was -£267 million compared -£658 million in May 2010.
• Mortgage approvals by mutuals in May 2011 were £1,790 million compared to £1,559 million in May 2010.
• Savings balances at mutuals fell by £418 million in May 2011 compared to a reduction of £373 million in May 2010.
• There was a net withdrawal of £613 million from savings accounts held with mutuals in May 2011 compared to a net withdrawal of £576 million in May 2010.
• Mutuals had a net receipt of £655 million into cash ISAs in May 2011 compared to a net withdrawal of £48 million in May 2010.
~ Ends ~
Notes to Editors
Detailed statistical tables accompany this press release.
The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
Rachel Wylie (née Le Brocq)
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ
Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk
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