- Net advances were £1,540 million in April 2004, up from £1,178 million in April 2003.
- Approvals (loans agreed, but not yet made) increased to £4,258 million in April 2004, from £4,059 million in April 2003.
- In the savings market, building societies had net inflows of £1,055 million in April 2004, up from £916 million in April 2003.
- Building society net receipts into cash ISAs were £1,742 million in April 2004.
Commenting on the mortgage market, Adrian Coles, Director-General of The Building Societies Association said:
“Net advances in April were up by almost one third on a year ago. It appears strong economic growth and continuing low interest rates continue to fuel the market. However, it is too soon to see what effect the May interest rate will have on the market and we expect a gentle slowdown later in the year. There is little evidence that borrowers will not be able to repay their loans to societies. Only yesterday Nationwide building society pointed out that the average loan to value ratio on all its mortgages was just 38%.”
On the savings side, Mr Coles said:
“With the end of the tax year there was a strong inflow of funds into ISAs, demonstrating the enduring popularity of this government inspired product. Its success in attracting people who otherwise might not save, makes it harder to understand why the Chancellor will not reconsider his decision to reduce the £3,000 ISA cash limit to £1,000 in 2006.”
