Net lending by building societies in May 2009 was -£752 million compared to £142 million in May 2008; and mortgage approvals in May 2009 were £1,607 million compared to £2,477 million in May 2008.
Commenting on mortgage figures, Adrian Coles, director-general of the BSA, said: "Gross mortgage lending by building societies was £1,515 million in May 2009, a similar level to the previous two months, but still 57% lower than gross lending in May last year. Building society mortgage approvals were also at similar levels to recent months.
“However, the £1,607 million of approvals in May were still about 35% lower than the value of mortgages approved in May last year. Therefore, while the mortgage market appears to have recovered slightly from the start of the year, levels of activity remain depressed."
In the savings market, savings balances held by building societies reduced by £106 million in May 2009, compared to an increase of £1,162 million in May last year. This is due to building societies experiencing a net withdrawal of £494 million in May this year, compared to a net inflow of £855 million in May last year.
