Monday, January 19, 2009
Category:
Finance News
According to the Building Societies Association, net mortgage lending by building societies was in excess of £422 million in November 2008.
This marked a slight increase on the previous month, which came in at £413 million. However, a further comparison between November 2008 and 2007 revealed that net mortgage lending was notably higher during the latter, at £790 million.
In terms of gross mortgage lending, this stood at £2,595 million in November 2008, in contrast to £4,070 million during the same month of 2007. Further comparative results were revealed; firstly, approvals in November 2008 were also lower than in November 2007, at £2,082 million and £3,850 million respectively. Net receipts of £636 million were recorded in November 2008 compared to net receipts of £2,348 million during November of the previous year. Finally, in November 2008 building societies had receipts of £83.1 million from Cash IAS, a figure which stood at £56 million the year before.
Adrian Coles, Director General of the Building Societies Association, commented: "The depressed housing market is seeing mortgage lending by building societies remaining low. With recent figures from the Land Registry suggesting that property prices continued to fall in November and with concerns over job security high, it is no surprise that buyers are keeping out of the market. However it is encouraging to note that after the negative net advances figures in the summer the last three months have seen positive figures which suggests perhaps that the market is not deteriorating even further."
With reference to the savings figures, Mr. Coles also commented: "Net receipts into building societies were £636 million. With the 150 basis point interest rate cut in November people were anxious to take out fixed rate savings accounts before the cut was reflected in the savings rates offered by societies, while some reclaimed savings from failed Icelandic banks will have also been deposited in society accounts."
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Homeowners that have decided against moving house as a result of the challenging property market may wish to consider the option of taking out a secured
home improvement loan to improve what they already have. This may be one to consider for homeowners who need more space to accommodate a growing family. Extending, adding a conservatory, or carrying out a loft or basement conversion are just some of the ways to add space to a property. Those homeowners who just feel like they want to make their home ‘new’ again and who need the finances to do so could consider a secured loan to refit kitchens and bathrooms and to redecorate throughout. Older Victorian type terraces can be modernised by hiring a qualified builder in to knock 2 reception rooms through into one to create more space. Repayable over a term to suit the borrower from 5 to 25 years, the loan could be used to turn their home into a dream property.
