Mortgage lending shrinks

Mortgage lending has fallen sharply, with approvals for house purchases 60 per cent lower than a year ago. The number of approvals fell by 14 per cent in November to a new low of 17,773, according to figures from the British Bankers’ Association. The number of people re-mortgaging but staying in their existing home also dropped significantly in November – by nearly half to the lowest level for eight years – as homeowners had problems finding deals. And the average amount borrowed was down 24 per cent on a year ago. With house prices falling and people waiting to see whether mortgages would get significantly cheaper, activity in the mortgage market remained stagnant.