Mortgage Loans at Building Societies fall
03/07/08
According to the latest news on the UK mortgage lending market, figures for lending from the leading building societies in the UK have fallen yet again last month. This situation is due to remain gloomy for the foreseeable future and experts point the finger at the state of the UK economy and the housing slump.
Net lending in May was £125 million according to the Building Societies Association, which is down from £666 million the previous month in April. The May figures are a substantial amount lower then the same time last year where 2008 figures are just one-tenth of what they were last year.
Adrian Coles who is the Director General of the Building Societies Association said “The figures reflect the considerable adjustment in housing market activity now being experienced. We expect activity to remain at low levels for some time.”
Although the mortgage market is looking gloomy currently, building societies are seeing good amounts of savings being made by consumers. This comes as no surprise with the economy looking the way it is.
Consumers are reacting to an uncertain environment and are saving more according to the Building Societies Association. Banks have also seen an increase in savings in this current environment.
