Mortgages worth £1.7 billion were approved by building societies in February, according to their trade body.

This is 23% higher than the £1.4 billion approved in February last year. Gross mortgage lending by mutuals was £1.5 billion in February, compared to £1.2 billion in February 2010.

Net lending by mutuals in February 2011 was -£614 million compared -£864 million in February 2010. Mortgage approvals were £1,693 million compared to £1,379 million a year ago.

Adrian Coles, director-general of the Building Societies Association, said: “Mortgage lending by mutuals continues to grow from the low levels seen last year. The good financial results released recently by many mutual lenders show that they are strongly placed to offer attractive products to homebuyers. However