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Mortgage lending slumps 61% on market anxieties
23 December 2008 16:12
British mortgage lending plummeted last month on the back of market anxieties, statistics have shown.
Data from the British Bankers Association (BBA) revealed that annual lending fell by 61 per cent in November, with the monthly amount slipping by 14 per cent.
Re-mortgages also receded, with the BBA recording just under 30,000, which could suggest existing customers are having difficulty finding improved terms.
David Dooks, statistics director for the BBA, commented that while the mortgage market was continuing to contract, high street lenders were still supplying around two-thirds of all home loans.
He added that the Bank of England's 1.5 per cent reduction in the base rate had led banks and lenders to re-assess their mortgage ranges and borrowings costs, adding further anxiety and subsequent declines to the market.
Statistics published by the Council of Mortgage Lenders earlier this month revealed that gross lending had fallen by 22 per cent month-on-month to £14.6 billion in November.
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