Mortgage lending in the U.K. tightened during 2010 to the lowest level in a decade, while business lending began to loosen towards the end of the year, according to The Daily Telegraph. On Friday, the Council of Mortgage Lenders reported that a total of only £136.3 billion was offered in mortgage loans during the last year, which is 5% lower than in 2009, and the smallest total since 2000. The group has forecast for a total of £135 billion in 2011, and warned that consumer demand could weaken further if the Bank of England is forced to raise interest rates to combat inflation.
The central bank’s Trends in Lending report showed that mortgage approvals slumped towards the end of the year, falling from 45,000 in November to 40,000 in December, marking the lowest level since March 2009. According to Financial Times, the BOE’s quarterly lending report showed that overall business lending rose by £1.3 billion in November, marking the first expansion since February. However, the data showed lending was 5.1% lower year-over-year, with small businesses being especially hard hit by the slump. The bank forecast that the strengthening recovery in 2011 would increase credit availability.
Click here to read the story on mortgage lending from The Daily Telegraph.
Click here for coverage of business credit from Financial Times.