Building society lending ‘constant’ in November

New figures have indicated that mortgage lending by building societies was unchanged from October to November.

Statistics from the Building Societies Association (BSA) indicated that there was a drop from £1.7 billion to £1.6 billion in homebuyer loans granted by mutuals, but the body noted that this was normal for the time of year.

On a seasonally adjusted basis, the figure was £1.5 billion for both months.

BSA director-general Adrian Coles said that at present, the market is still constrained by limits on finance for lending and a lack of homes coming onto the market.

However, conditions for the issue of homebuyer loans are “improving slowly”.

The last few months have seen more mortgages at high loan-value levels of 80-90 per cent being issued, Ray Boulger, the senior technical manager at John Charcol, noted recently.

He suggested that the arrival of more competition in the sector will help to improve matters for buyers.

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