2 Jan

Building society mortgage lending rises

Building society mortgage lending rises

New figures have shown that the amount of money lent in mortgages by building societies rose between October and November 2008.

The Building Societies Association (BSA) revealed that its members lent £422 million in November, a rise of nine million on October.

Although such totals are well down on the £790 million lent in November 2007, BSA director general Adrian Coles suggested these may represent a sign that the market is stabilising.

He stated: "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."

Buyers may be keener to take out mortgages due to recent falls in house prices and interest rates.

Last week Halifax said a major indicator of affordability - the ratio between prices and income - was more favourable in November 2008 than it has been for more than five years.

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