Building Society lending at year high

But the figure is still 42% lower than the £3.6bn recorded in July 2008 and mortgage approvals were also down on the year. Home loan agreements reached £1,49bn in July 2009, compared to £2,64bn in July 2008. Adrian Coles, director-general of the BSA, says he expects funding constraints to keep the mortgage market subdued over the remainder of the year. "We warned back in March, when Bank rate was cut to its present level, that the flow of funds into the mortgage market would be restricted as savings inflows decline as a result of very low interest rates," Coles says. In the savi...