Mortgage lending by mutuals 'rose in June'

30 July 2010

Written by Jeni Browne

Gross mortgage lending by mutuals was up 19 per cent in June compared with May, hitting £1.8 billion from 1.5 billion, according to one organisation.

Research from the Building Societies Association revealed that home loan approvals had also increased, with an 11 per cent month-on-month growth seen last month.

In June, the amount of money authorised for borrowing totalled £1.7 billion, compared with £1.6 billion in May, the survey revealed.

"Activity in the mortgage market has picked up compared to the start of the year and the rising number of approvals is a positive indicator for coming months," director-general of the body Adrian Coles commented.

However, he warned that the forthcoming cuts to public sector spending could limit growth in the industry, as the health of the economic recovery becomes uncertain.

Gross mortgage lending by mutuals was 34 per cent higher in June than the £1.3 billion average seen over the previous five months, the study found.

The Bank of England recently revealed that total net borrowing for the purchase of property rose by £0.7 billion in June, compared with an increase of £0.8 billion seen in May.

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