Gross mortgage lending by building societies hit the highest level seen this year in June although it remains 40% lower than last year.
The latest statistics from the Building Societies Association (BSA) show that while gross lending grew from £1.51bn in May to £2bn in June, it remains 40% lower than the £3.25bn recorded in June last year.
Net lending by building societies in June 2009 was -£511m compared to -£471m in June 2008.
Mortgage approvals in June 2009 also dropped to £1,817m compared to £2,721m in June 2008.
Building societies had a net withdrawal of £2,239m in June 2009 compared to net receipt of £419m in June 2008. Savings balances held by building societies also decreased by £1,913m in June 2009, compared to a £865m increase in June 2008.
Brian Morris, head of savings policy at the BSA, says: "Gross mortgage lending by building societies was just under £2bn in June 2009, the highest level seen this year, and up 30% on May.
"Despite this, lending remains at historically low levels, and is 40% lower than in June 2008. Mortgage approvals show signs of stabilising as they reached a year high of £1.8bn, but are more than 30% down on this time last year."
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