Property in: LONDON

BSA Reports a 22% Increase In Mortgage Lendings

2 minutes

Building Societies Association (BSA) reveals continuing momentum in the property market, with a 22% increase in gross lendings by building societies against the same time in 2020.

The latest data by BSA shows gross lending in the third quarter (Q3) of 2021 reaching just under £17bn.

Compared to the same time in 2020, this figure means a 22% rise.

The number of approved loans by building societies has also increased in Q3 2021: up by 4% compared to Q3 2020.

The societies hold a significant mortgage balance of more than  £351bn, which is 23% of the overall mortgage market.

Comment by the expert

Andrew Gall at the BSA highlights high mortgage lending activity in the property market, which means that the Stamp Duty Holiday tapering period has not significantly affected property purchases.

The demand next year will likely be supported by people continuing the re-evaluation of their housing priorities in «the post-pandemic world».

Gall points out there are signs that the Bank of England might increase the record-low rates of 0.1% in the following months. The mortgage rates might rise, but most homeowners have fixed-term mortgages, meaning no immediate changes to monthly payments.

Gall concludes, «Savings balances have also grown at building societies in the period, and it’s particularly pleasing to see an inflow to Cash ISAs, despite a £3.6 billion outflow across the market.»

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