Mortgage lending at record low

Nicky Burridge,Pa
Tuesday 01 February 2011 06:06 EST
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New mortgage lending fell to a record low in 2010 and advances are expected to drop further during the coming year, figures showed today.

Net lending, which strips out redemptions and repayments, totalled just £8.15 billion during the year, down from £11.33 billion in 2009 and the lowest level since the Bank of England's records began in 1987.

The market finished the year on the back foot, with net lending contracting by £298 million during December, as homeowners repaid more than lenders advanced.

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