Official figures show evidence of slowdown

There was further evidence this morning that Britain's appetite for and access to credit is easing.

Figures from the Bank of England showed net lending to individuals slowed in November, increasing by £8.9 billion, which is below the six-month average.

The 12-month growth rate fell to 10.2 per cent, while the three-month annualised growth rate was down to 8.9 per cent.

The figures also showed that while lending for house purchases dipped, remortgaging was up, suggesting homeowners are trying to get their repayments down.

The liquidity squeeze has seen a number of lenders tighten their terms and increase their arrangement fees making cheap mortgages harder to come by.

With home insurance premiums, fuel bills and food costs all on the rise, homeowners are in for a difficult start to 2008.

08/01/2008 10:01:53