Slowing down in mortgage market

The British Bankers' Association (BBA) has reported less than average mortgage lending in November.

This follows the trend begun in October.

BBA statistics director, David Dooks, said of the latest data: "Mortgage activity is notably lower than this time last year and, as we expected, lending has begun to slow down.

"Judging by the significantly lower number of mortgage approvals in October and November - partly resulting from lower demand, partly from tighter supply – the market is likely to continue slowing in the coming months.

"Tighter household finances and uncertainty in the financial markets are driving consumer behaviour. Deposits are weak and unsecured borrowing remains subdued, despite a marginal rise in November."

Homeowners, worried by predicted rises in utility bills and home insurance premium rates, are apparently not moving house despite Bank of England base rate cuts.

28/12/2007 13:56:35