Mortgage Approvals and Gross Lending Shows Continued Growth in August

Despite difficult economic conditions, mortgage lending by mutuals continued to strengthen in August with loans approved up 10% on July.

Both mortgage approvals and gross lending for the year to date are up 16% compared to the same period in 2010.  Gross lending is at its highest level for 11 months.

The headline figures reveal:

• £2.1 billion of mortgages approved by mutuals in August, up 10% compared to July, and up 17% on August 2010.

• 16% rise in mortgage approvals for the first eight months of 2011 at £14.6 billion (£12.6 billion, January - August 2010).

• 8% rise in gross mortgage lending by mutuals in August, up to £2.1 billion from £2.0 billion in August 2010.

• 16% increase in gross lending for the first eight months of 2011 standing at £14.5 billion (£12.5 billion, January - August 2010)

• Savings balances were up £0.4 billion in August 2011, compared to a reduction of £0.7 billion in August 2010.

• Excluding interest credited to accounts, mutuals’ net receipts were essentially flat in August 2011, compared to a net withdrawal of £1.0 billion at the same time in 2010.

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