Building societies report threefold increase in lending
21 November 2003
Building society lending tripled over the past year, according to the latest figures.
Data from the Building Societies Association shows that net advances totalled a massive £2,525 million in October 2003, up from £859 million in October 2002.
The BDA figures also show that gross advances amounted to £5,184 million in October 2003, increasing from £3,148 million in October 2002, while in the savings market, building societies had net inflows of £675 million in October 2003, down from £1,106 million in October 2002.
Commenting on the mortgage market, Adrian Coles, director general of The Building Societies Association said: "Building society net advances tripled in the year to October 2003, starkly re-emphasising the attractions of building society mortgage products in a strong housing market, and an active re-mortgage market. Societies' market share has grown strongly this year."
On the savings side, Mr Coles added: "Savings inflows recovered in October to the second highest figure this year. However, this was to be expected for seasonal reasons and inflows remain well down on a year ago. Societies have been making significant use of the wholesale markets in the second half of this year."