BSA highlights 'encouraging' mortgage trend

Date:Tuesday 30th November 2010
Author: Max Freedman

The Building Societies Association (BSA) has noted that the number of mortgage approvals at mutuals has grown in recent months.

Director general of the industry body Adrian Coles described this as an "encouraging trend" and suggested it may lead to a recovery in market share for such financial services providers.

Mr Coles made his remarks after the BSA revealed that gross mortgage lending at mutuals stood at £2 billion for October - ten per cent down on the previous month.

"Although lending by mutuals fell in October, gross lending remains similar to the average over the preceding three months," he said.

BSA figures showed that mortgage approvals actually dropped slightly between September and October.

Mr Coles suggested consumer confidence is currently low, due to government spending cuts and reports of falling house prices.

Last week, the organisation published a report entitled Long Term Safety Nets to Protect Mortgage Borrowers, which looked at alternative solutions for consumers who get into financial trouble with their home finance payments.