Mortgage lending by building societies rose significantly during July according to latest figures from the Building Societies Association (BSA). Mutuals lent a total of £3.1 billion to mortgage customers last month, 44% more than in July 2011 and 14% more than in June. According to the BSA, 26% of all UK mortgage approvals were from building societies, 32% higher than the previous year, suggesting more people are turning to mutuals following various scandals in the banking sector. Market share from building societies rose to 24% in July, a rise of 17% compared with the same period last year. Savings balances also boomed to over £1 billion in July, much higher than the same month last year, although the BSA were quick to point out that savings flows tend to vary from month to month. Adrian Coles, director-general of the Building Societies Association, said: "Mutuals are currently enjoying a sustained increase in lending activity, and an increase in deposits from savers. Lending activity by mutuals has been growing strongly on a year on year basis for some time now, and in July gross lending rose again by a healthy 44%. At the same time lending by banks fell by 9% in July. As a result mutuals continue to take market share, up to 24% in July, well above the 17% figure for the same month on 2011."
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