Thur, March 12 2009

Mortgage lending continued to fall in January, according to the Council of Mortgage Lenders (CML).

Just 23,400 mortgages were completed for all house buyers, a new record low, with only 8,900 first-time buyers able to take out home loans.

The number of mortgages lent was down by 28% from December, and 52% lower than in January 2008.

The CML said the recession and falling house prices were forcing lenders to ration their lending even more.

"January and February are usually the quietest months in the mortgage market," said Michael Coogan, the CML's director general.

"The current withdrawal of many specialist, small and foreign lenders from new lending has created a huge gap in the capacity to fund mortgages to match consumer demand and this is continuing in 2009," he added.

SOURCE: News.bbc.co.uk