Conveyancing: Mortgage lending grows in November

Gross lending by building societies and other mutuals increased in November, showing positive sector growth.

Some £2.5 billion was lent by building societies and other mutuals in the penultimate month of 2011, up by 24 per cent compared to November 2010 (£2 billion), according to figures from the Building Societies Association (BSA).

Savings balances held by mutuals also increased by £0.5 billion in November, compared to an increase of £0.6 billion in November 2010.

The BSA also reported a 16 per cent increase in gross mortgage lending for the first 11 months of 2011 at £21.5 billion from £18.6 billion between January to November 2010.

Adrian Coles, director-general of the BSA, said: "The New Year has seen some excellent mortgage products go on sale from mutuals with a return to some offering higher loan to value mortgages. These are encouraging trends against rather discouraging developments in the wider economy."

Despite disappointing economic growth, the BSA's figures indicate that Britons are increasingly returning to the property market, as house prices stabilise.

This has also been facilitated by the willingness of mutuals to lend.

Published by Kevin Round