Lending to home-buyers in the UK at record low

The number of mortgages advanced to people buying a home in the UK slumped to a new record low in January, figures showed today.

Just 23,400 loans were taken out by people purchasing a property during the month – 28% fewer than in December and 52% down on January 2008, according to the Council of Mortgage Lenders.

But there was a slight increase in the number of people remortgaging, with 44,000 loans advanced to people switching to a better deal.

That was 8% more than in December, but still half the level for January last year.