Mortgage lending 'increased in September'

Net mortgage lending by British building societies increased in September to £314 million, according to new research.

However, the Building Societies Association (BSA) claims the value of mortgages offered by lenders was down 47 per cent when compared with last September.

Meanwhile, gross mortgage lending by building societies fell to £3.1 billion, a drop of more than a fifth over the past 12 months, and the BSA blamed buyers'' reluctance to enter the housing market for the decline.

Commenting on the figures, Adrian Coles, director general of the BSA, said: "With confidence amongst potential homebuyers low, it is no surprise that mortgage lending is down on last year."

"Nevertheless, the increase in net lending in September is to be welcomed," he added.

In related news, the Royal Bank of Scotland and Natwest have both introduced new two-year fixed-rate mortgage deals and have increased lending to new customers by 28 per cent year-on-year, reports the Daily Telegraph.

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