Fall in mortgage lending in UK

Mortgage lending remained subdued during February as lenders struggled to meet demand in the face of the credit crunch, figures showed today.

A total of £24bn (€30.7bn) was advanced during the month, 7% less than in January and 6% below the level for February last year, according to the Council of Mortgage Lenders.

The group said demand for mortgages remained strong but could not be met from existing funding.

It warned that unless the Bank of England did more to improve liquidity levels, lenders would continue to reduce their product ranges and increase their prices.