Lending falls as mortgage screws tighten
The increase in net lending to individuals for last month was below that seen in February, it has emerged.
Figures from the Bank of England put the total net lending during March at £8.2 billion, with the 12 month growth rate slowing to 8.7 per cent and the three-month annualised growth rate falling by 0.1 per cent to 7.7 per cent.
In total 64,000 loans were approved for mortgages, 98,000 for remortgages and 57,000 for other purposes, all lower than in February.
Michael Coogan, director general of the Council of Mortgage Lenders, said: "It comes as no surprise that approvals for house purchase have continued to decline.
"This will result in a substantially lower level of housing transactions in 2008 than we saw last year."
He added that mortgage lending volumes were likely to fall before they improve as a result of a £30 million funding gap.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors told the BBC that the drop in mortgage approvals is not surprising considering the "aggressive" scaling back on finance provision to those looking to purchase a home.
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