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Mortgage lending up £1bn

Mortgage lending went back into positive figures this month rising by more than £1bn, according to the Bank of England.

In its August lending statistics, net lending secured on dwellings rose by £1.16bn to £699m, up from July’s net repayment of £462m and above the previous six-month average of £600m.

It found that secured lending by banks increased by £2.7bn over the month, which were in line with the July figures, whereas approvals for remortgaging of 29,059 were below the July figure of 33,880.

The Building Societies Association revealed gross lending by building societies in August 2009 was £1.5bn, compared to £2.6bn in August 2008. BSA says the figures for August 2009 exclude Britannia, but August 2008 data includes Britannia. Last month Britannia merged with the Co-Operative Bank and ceased to be a mutual.

In the savings market, balances held in savings accounts at building
societies fell £202m, experiencing a net withdrawal of £473m over August.

BSA director general Adrian Coles says: “Despite signs of a modest improvement in market conditions in recent months, activity will not return to normal levels until funds for mortgage lending are more widely available to building societies and other lenders.”

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  1. Britannia
    The article claims that Britannia is no longer a mutual. In fact, Britannia ceased to be a Building Society, but continued to be a mutual after merging with the Co-operative Bank, which is itself a member-owned business.

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