Gross mortgage lending by mutuals increased 19% year-on-year to GBP 1.79 billion in June, the Building Societies Association said Thursday. In May, gross lending by mutuals amounted to GBP 1.50 billion.
Mutual lenders approved mortgages worth GBP 1.73 billion in June, an increase of 11% from May, when GBP 1.55 billion worth mortgages were approved.
"Activity in the mortgage market has picked up compared to the start of the year, and the rising number of approvals is a positive indicator for coming months," BSA Director General Adrian Coles said.
"However, the forthcoming public sector cuts may add to the economic uncertainty which could constrain any significant growth in mortgage lending in coming months," he added.
The BSA said savings balances deposited at mutuals increased by GBP 16 million in June, compared to a reduction of GBP 373 million in May. In the first half of 2010, balances at mutuals increased by GBP 1.44 billion. Excluding interest credited to accounts in the month, there was a net withdrawal from mutuals of GBP 262 million in June compared to a net withdrawal of GBP 576 million in May.
"Savings balances at mutuals have increased over the first six months of the year which is encouraging given the difficult market conditions that financial institutions face," Coles said. "Yet it will remain challenging to attract savers whilst the Bank Rate remains low and the tough economic climate puts added strain on household finances."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.