Building society gross advances amounted to £5,582m in August 2006 compared to £4,397m in August 2005.
Other figures include:
- Net advances were £2,190m in August 2006 compared with £1,628m in August 2005.
- Approvals were £5,540m in August 2006 up from £4,149m in August 2005.
- Building societies had net inflows of £399m compared to net receipts of £1,350m in August 2005.
Neil Johnson, PR and policy manager of the Building Societies Association, said: “August was yet another very strong month for mortgage lending. Gross advances increased by 27 per cent compared to 2005, while net advances rose by 34.6 per cent. These are the highest August advances figures since 1988.
“Net mortgage approvals were up by 33.5 per cent year on year, and were the highest August figures on record.
“The mortgage market continues to be strong, and the approvals figure suggests that strong demand will continue, and that the recent interest rate rise has had little impact on buyers. This clearly shows buyers viewing the future of the housing market with confidence.
“However, house prices are continuing to rise, and interest rates are forecast to increase again later this year. Buyers need to ensure that against such a financial background they can meet their monthly mortgage payments into the future.”
