Mortgage lending ‘weakening’

Levels of mortgage lending around the UK have been weakened in recent months, the British Bankers’ Association (BBA) has made clear.

According to data complied by the organisaiton, the various pressures on household finances that have been increasing in recent months saw house purchase approval rates reach a “record low” in December.

David Dooks, statistics director for the BBA, said: “Mortgage lending weakened notably in the second half of 2007 as the credit crunch impacted on banks’ ability to lend.

“At the same time, demand for mortgages also softened in the face of increased borrowing costs and lower disposable income.”

Meanwhile, despite billions of pounds being added to the UK’s personal debt mountain every month, the bankers’ association has also described consumer borrowing for December as being “muted”.

The Credit Action charity reports that the UK’s overall debt management burden increases by almost £1 million every five minutes.