The Building Societies Association says the mortgage and savings markets are both in good shape despite the disappointing figures recorded in November.
It says building society gross mortgage advances dropped to £1,622m in November from £1,877 in October.
It says in the savings market building societies attracted £515m in November compared to £1,123m in October.
BSA director-general Adrian Coles says: "This month's lending figures are the lowest for some time but it is important not to read too much into this.
"Interest rate cuts should boost consumer confidence and when lending and savings figures are seasonally adjusted they are at a normal level."