Building society lending hits year high

According to the Building Societies Association (BSA), lending rose to £2.1bn in July, the highest monthly amount this year but still 42% lower than the £3.6bn lent in the same month last year. Mortgage approvals were down to almost £1.5bn in July, compared to £2.6bn the previous year. Net lending was -£577m over the month, compared to -£112m in July 2008. The BSA says it expects the mortgage market to remain subdued for the remainder of 2009, because of the difficulties lenders face in raising funds for mortgages. Director general Adrian Coles says low interest rates, rising unemp...