UK Savings Reach Record High In August

By: Submissions

Neil Johnson writes: Building society net receipts in August were nearly double those in July. This is the highest August figure ever and the highest monthly figure since April 2005. We believe that successive increases in interest rates and subdued equity markets have encouraged savers to put more money away, and we expect this to continue while rates remain high and savers recognise the wide range of good value building society savings products available to them.

• Building society gross advances amounted to £4,341m in August 2007, compared to £5,582m in August 2006
• Net advances were £656m in August 2007, versus £2,190m in August 2006
• Approvals were £4,168m in August 2007 down from £5,540m in August 2006 
• Building societies had net receipts of £1,389m in August 2007 compared to net receipts of £399m in August 2006 
• Building society net receipts to cash ISAs were £124m in August 2007, compared to £150m in August 2006 

Commenting on the mortgage figures, Adrian Coles, Director-General of the BSA said: “These figures confirm the slowdown in building society lending over the summer, as a combination of higher interest rates and robust lending criteria continued to bite.”

Contact: Neil Johnson

http://www.bsa.org.uk

The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of almost £315 billion and hold residential mortgages of just under £215 billion, approximately 18% of the total outstanding in the UK. Societies hold over £200 billion of retail deposits, accounting for about 19% of all such deposits in the UK. Building societies also account for over 37% of all cash ISA balances. Building societies employ over 50,000 full and part-time staff and operate through more than 2,100 branches.

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