January saw a further decline in the amount of mortgages approved, a new report has revealed.
Figures from the Council of Mortgage Lenders have shown that during the first month of 2009, 23,400 home loans were borrowed, compared to 32,400 in December.
This figure was also less than half that of January 2007 levels, when it stood at 48,600.
The data found that in January 2009, there were 8,900 homeowner loans supplied to first-time buyers, down from 18,000 the year previously.
In addition, 14,500 mortgages were given to home movers, compared to 30,600 in the same period in 2008.
This drop in lending may suggest that property buyers seeking home loans as a debt solution may find it harder to be approved for a deal.
It comes after Steve Turner, the head of communications at the Home Builders Federation, called upon the government to use its influence over bailed-out banks to boost the flow of credit into the market.
By Jamie Price