Adrian Coles, director-general of the Building Societies Association said: “Although building society lending in October was greater than in previous months, activity is still subdued in comparison to last year, with gross advances amounting to £4,654 million in October, compared to £4,936m in October 2006. The mortgage market looks set to cool further as the impact of the higher interest rates and tighter credit conditions more generally continue to feed through.”
However, building societies attracted record savings of more than £3 billion in October, as high interest rates continue to attract savers to building societies.
Coles said: “It seems that the majority of these deposits are funds withdrawn from the Northern Rock bank, with the attractive savings products offered by building societies continuing to appeal to customers looking for the best home for their money.”
“At £3,024 million October net receipts for building societies were the highest monthly figures ever, beating the record of £2,821 million set last month, and almost four times the £772 million deposited in October 2006.”
Building Society Statistics October 2007 – Key Figures
Building societies had net receipts of £3,024m in October 2007 compared to net receipts of £772m in October 2006
Building society net receipts to cash ISAs were £91m in October 2007, compared to £65m in October 2006
Building society gross advances amounted to £4,654m in October 2007, compared to £4,936m in October 2006
Net advances were £1,124m in October 2007, versus £1,661m in October 2006
Approvals were £3,658m in October 2007 down from £4,280m in October 2006
