‘Record’ amount of home loans issued by building societies

Building societies issued a record number of home loans last month, according to new figures.

Research by the Building Societies Association (BSA) reveals that loan approvals accounted for £4,917 million in February, up from £3,646 million during the same month in 2006.

Meanwhile, net advances had increased from £629 million to £1,292 million.

Director general for the BSA Adrian Coles said: "These are strong figures, but we may be seeing the peak of the market. The recent rate rises are still to work through fully into the mortgage market.

"Therefore, mortgage lending figures might become a little more subdued as the year progresses."

However, he claimed that "a reasonably strong economic outlook" is set to ensure that there is a continued demand for mortgages over the course of 2007.

According to Credit Action, banks and buildings societies are set to issue £1 billion every day this year via home loans.

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