Qualified advisers answering your
Financial Questions
call 0800 092 1245

Building society withdrawals hit record levels

With news that building society withdrawals hit a massive £2.2 billion in June there was initial concern that the so-called safe haven status afforded to the building society sector was in danger. However, the record £2.2 billion of withdrawals in June, compared to a £419 million inflow last June, appears to be the result of more and more people deciding to pay off their mortgages. So will this trend continue?

The building society sector believes that with unemployment increasing and uncertainty regarding the short-term performance of the UK economy, more and more people are using their savings to pay off as much of their mortgages as possible. In an attempt to reduce the pressure in the medium term many people seem willing to forego interest on their savings, which when you compare mortgage rates against savings rates is perhaps not a bad idea.

Interestingly mortgage lending in the UK building society sector increased to £1.98 billion in June, which was up 30% on the previous month, but well below the £3.25 billion reported at the same time last year. It does seem as though the initial nerves regarding the UK building society sector, which came about after the collapse of the Dunfermline building society, have subdued somewhat and investors seem a little calmer today.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details