18 August 2006
The director general of the Building Societies Association (BSA) has said that despite last month's rate rise, the latest lending figures suggest people are continuing to manage their debt commitments.
In July 2006, building society gross advances were at the £4,888 million level compared to £3,970 million in July 2005.
The BSA figures also revealed that building societies had net inflows of £444 million in July 2006 compared to net receipts of £970 million in July 2005. Approvals were up also with £5,499 million in July 2006 compared to £3,385 million in July 2005.
Adrian Coles, of the BSA, commented: "Net mortgage approvals, which give a good indication of how business will look over the next couple of months, were the highest July figure on record.
"However, even with the rate rise we believe that most people will continue to be able to manage their debt commitments. Indeed, around half of all building society outstanding loans are at fixed rates, the highest proportion for a number of years. These borrowers will be protected from the rate rise."
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