Gross lending was £1,399 million in April, a 13% fall on the £1,605 million in March.
Adrian Coles, BSA director general, said: "Lending activity in April was relatively subdued compared to March, and given the continuing uncertainty regarding unemployment, possible tax rises, the future path of house prices and the availability of mortgage funds, lending figures are likely to remain at a similar level in coming months."
Net lending by mutuals in April 2010 was -£923 million compared to -£765 million in March.
Mutuals see uplift in savings balances in April
Balances held in savings accounts at mutual institutions increased by £929 million in April compared to an increase of £534 million in March.
After interest credited to accounts is excluded, mutuals had a net receipt of £537 million in April.
Coles said: "Mutuals have been able to attract savers by offering competitive rates, especially on popular ISA products.
"However, maintaining positive inflows will remain a challenge while the Bank Rate remains low as savers may seek higher returns elsewhere, albeit at greater risk, or may opt to repay debt instead."
Mutuals had a net receipt of £668 million from cash ISAs in April 2010 compared to a net receipt of £210 million in March.
Paul Hunt, managing director of Phoebus, the mortgage software provider, said: “The mutual sector needs this extra inflow of cash if it’s to survive this prolonged period of ultra-low interest rates. It would be a shame to see more societies go the way of the Chesham.”
