New reports issued state gross mortgage lending by building societies has fallen to £1.52bn in May, down from £3.53bn at the same time last year.
The latest figures released from the Buildings Societies Association also show that net mortgage lending was -£752m in May compared with £142m in May 2008.
Mortgage approvals for May remained consistent, as both April and May saw building societies lend at £1.6bn for approvals.
The value of mortgages approved still remains 35% lower than the £2.48bn in approvals seen in May last year.
Adrian Coles, director-general of the BSA, says: “While the mortgage market appears to have recovered slightly from the start of the year, levels of activity remain depressed.”
“There is evidence that households are looking to repay debt rather than save, and it is possible that there will be a net withdrawal, before interest credited, from the total UK savings market in 2009.”