Net mortgage approvals were the highest July figure on record and mortgage lending is up 28%, reports the Building Societies Association (BSA).
* Building society gross advances amounted to £4,888m in July 2006, compared to £3,970m in July 2005.
* Net Advances were £1,662m in July 2006, versus £1,295m in July 2005.
* Approvals were £5,499m in July 2006 up from £4,385m in July 2005.
* Building societies had net inflows of £444m compared to net receipts of £970m in July 2005.
* Building Society net receipts to cash ISAs were £119m in July 2006, compared to £127m in July 2005.
Commenting on the mortgage market, Adrian Coles, Director-General of BSA, said: "July was yet another strong month for the mortgage market; gross advances were up 23% year on year and net advances were up significantly, increasing by 28%. Net mortgage approvals, which give a good indication of how business will look over the next couple of months, were the highest July figure on record. Yet there are signs that the mortgage market is about to come off the boil to a gentle simmer. The decision by the Bank of England to raise interest rates is bound to bite over the next couple of months. Potential borrowers need to check that another rate rise would not take their monthly mortgage payments out of the realms of affordability. However, even with the rate rise we believe that most people will continue to be able to manage their debt commitments. Indeed, around half of all building society outstanding loans are at fixed rates, the highest proportion for a number of years. These borrowers will be protected from the rate rise."
