Consumers know a good deal when they see it

Net advances were £1,396 million in August 2003, up from £858 million in August 2002.

Approvals (loans agreed, but not yet made) increased to £4,120 million in August 2003, from £3,093 million in August 2002.

In the savings market, building societies had net inflows of £288 million in August 2003, down from £832 million in August 2002.

Building society net receipts into cash ISAs were £139 million for August 2003.

Commenting on the mortgage market, Adrian Coles, Director-General of The Building Societies Association said:

“Building societies continue to power ahead in the very competitive mortgage market. Consumers clearly know a good deal when they see it and are turning to building societies in increasing numbers. Overall, confidence remains high in the market.”

On the savings side, Mr Coles said:

“Savings inflows have fallen away in recent months, given the emerging signs of a recovery in the equity markets and competition from National Savings. Instead building societies have been using the wholesale markets to meet the very strong demand for their mortgage products.”