Mortgage lending by mutuals 'increases'

29 June 2010

Written by David Whittaker

Mortgage lending by mutuals increased in May, growing eight per cent to £1,508 million from £1,399 million in April, according to the Building Societies Association.

However, the body's June Property Tracker survey has revealed that only 45 per cent of people thought that now was a good time to apply for a home loan.

Adrian Coles, director-general of the organisation, said individuals were worried about the outlook for the economy and their ability to pay a deposit.

"As such, lending activity is likely to remain at similar levels in the months to come," he commented.

Meanwhile, £1,571 million of mortgages were approved but not yet completed in May, barely changed from April's figure of £1,527 million.

A similar study conducted by the Bank of England recently found that the total number of home loans authorised by all providers decreased last month at 49,815, under its six-month average of 51,856.

However, net lending on properties increased by £1.2 million in May - a stronger rate of growth than the previous month when it rose £1 million.

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