Mutual lending increases 32%

In August gross lending by mutuals increased 32% to £4bn, up from £3bn in August 2012.

According to the latest figures from the Building Societies Association (BSA) gross lending by mutuals for the first eight months of the year stands at £26.1 billion, 30% higher than same period in 2012.

One in three new loans from mutuals in August were made to first time buyers of which 29% were made to borrowers with a deposit of 10% or less.

Adrian Coles, Director-General, Building Societies Association said: “Mutual lenders have sustained their activity in, and support for, the UK housing market and home-buyers over the long-term.

“Consumer sentiment has now clearly turned the corner and is beginning to improve. However, sentiment can be fragile and it is vital that unexpected surprises and overheated rhetoric are avoided.

“Viewing today’s market in context, it is certainly getting better, however, the number of loans approved for house purchase in the past three months ran at around 60,000 a month, less than two thirds of the historic average.”

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