Building Society Net Lending Declines as Savings Continue to Exit

The latest figures from the Building Societies Association (BSA), released today, show:

• Building society gross lending was £1,494 million was in August 2009 compared to £2,067 million in July 2009 and to £2,660 million in August 2008.
• Net lending by building societies in August 2009 was -£655 million, that is borrowers repaid £655 million more than was borrowed.
• Mortgage approvals amounted to £1,264 in August 2009, compared to £1,490 million and £2,880 million in August 2008.
• Savings balances held by building societies decreased by £202 August 2009 compared to a decrease of £912 million in July 2009, and an increase of £995 million in August 2008.
• Excluding any interest added to building society savings accounts, £473 million was withdrawn in August 2009 compared to £1,361 million withdrawn in July 2009 and a withdrawal of £292 million in August 2008.
• Building societies had a net receipt of £737 million into Cash ISAs in August 2009, compared to a net recipt of £450 million into in July 2009 and , compared to net withdrawal of £292 million in August 2008.

Note: August 2009 and August 2008 data is difficult to compare as Britannia was merged with The Co-operative Financial Services at the start of the month and is not longer a building society.

Press Release: Building Societies Association.

Funding Table [PDF]

Lending Table [PDF]

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