Approvals (loans agreed, but not yet made) increased to £4,760 million in July 2004, from £4,086 million in July 2003. In the savings market, building societies had net inflows of £1,097 million in July 2004, up from £155 million in July 2003. Building society net receipts into cash ISAs were £153 million in July 2004.
Commenting on the mortgage market, Adrian Coles, director-general of The Building Societies Association, said: "Although lending is still looking very strong this month, with gross advances at their highest since last October, the approval figures indicate that people are now looking to remortgage. With interest rates rising, people may be starting to fix their mortgages in order to gain certainty on their repayments, in response to the strong message coming from the Bank of England."
On the savings side, Coles said: "The jump in the amount of money going into savings is another consequence of the rise in interest rates. This month has seen the highest figure of inflows for over 3 years (on a seasonally adjusted basis). Cash savings accounts are now looking more attractive as people start to reassess their investment needs."
