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Building societies see mortgage lending fall 10%
29/11/10
Edited by Tom Bardsley.Gross mortgage lending by the UK's building societies fell by ten per cent in October compared with the previous month, according to new figures.
The Building Societies Association (BSA) said mutuals gave the green light to home loans worth a total of £2 billion.
Although this was down on the £2.2 billion agreed during September, it was nevertheless in line with the average for the previous three months, the industry body noted.
BSA director-general Adrian Coles said activity in the home loans market has "shown signs of weakening".
"Reports of falling house prices and government spending cuts have lowered consumer confidence, which has put further downward pressure on demand for mortgages," he added.
The BSA's figures come after the Council of Mortgage Lenders revealed gross home loan approvals by banks and mutuals were worth £12.4 billion last month.
This was unchanged from September, but was down nine per cent on the £13.6 billion in total borrowing given the green light during October 2009.
