Mortgage market remains steady

- In the savings market, building societies had net inflows of £993 million in June 2005, up from £554 million in June 2004.

- Building society gross advances amounted to £3,988 million in June 2005, compared to £4,689 million in June 2004.

- Net advances were £1,350 million in June 2005, down from £1,661 million in June 2004.

- Approvals (loans agreed, but not yet made) decreased to £4,327 million in June 2005, from £4,849 million in June 2004.

- Building society net receipts into cash ISAs were £146 million in June 2005.

Commenting on the savings market, Brian Morris, Head of Savings at the Building Societies Association, said: “Savings inflows have been very robust over the last few months. Indeed, net receipts this month are the highest June figures since 1997. With high street sales slowing, it looks like consumers are reining in their spending and choosing to save instead.”

On the mortgage side Mr Morris said: “Whilst lending has not hit the highs of Q2 2004, it was not expected to. Instead it remains steady. Approvals have increased this month and this is probably explained by the very attractive deals being offered by many building societies, especially on fixed rates, reflecting the markets’ anticipation of a base rate cut in the near future.”