Building society gross advances amounted to £5,047m in September 2006, compared to £4,147m in September 2005.
Net advances were £1,906m in September 2006, versus £1,201m in September 2005.
Approvals were £4,874m in September 2006 up from £4,071m in September 2005.
Building societies had net inflows of £1,001m compared to net receipts of £1,110m in September 2005.
Building society net receipts to cash ISAs were £57m in September 2006, compared to £60m in September 2005.
Commenting on the mortgage market, Adrian Coles, BSA director-general said:
“Despite August’s interest rate rise, September was another strong month, with gross advances being the highest September figures on record. On a seasonally adjusted basis, mortgage approvals were also the highest September figures on record.
“The seasonally adjusted approvals figure is, however, slightly down (by 6.2%) on the record figure in August, suggesting that the market may be slowing slightly.
Even so, the approvals figure is still strong, suggesting that high demand will continue in the short term. With a further interest rate rise forecast before the end of the year, we again urge borrowers to consider the impact of higher interest rates on their mortgage and ensure that they will still be able to afford the monthly payments. Products such as fixed rate mortgages provide borrowers with certainty over future repayment levels.
“Although still down year on year, savings inflows are up compared to recent lows. This could be due to the recent increase in interest rates and the growing expectation of a further rise in the future.”
