Bank figures 'will show slump in mortgages'

27/10/2008

New data from the Bank of England will suggest a further drop in mortgage lending, the News of the World reports.

The figures, to be officially released on Wednesday, are set to show that 30,000 new home loans were issued last month.

This is 70 per cent down on September 2007, when the effects of the credit crunch were only beginning to be felt.

Research from Moneysupermarket.com, also cited by the newspaper, suggests that 21,000 homes - or 58 a day - are being repossessed by banks.

Another 2008 forecast - from the Council of Mortgage Lenders - is still more gloomy, predicting 45,000 repossessions, or over 100 a day, for the year.

Both of these reports were researched prior to the government's announcement last week that there would be new legal guidelines for judges who preside over repossessions cases.

They were urged by ministers to oblige lenders to explore all other options before allowing a repossession order.

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle,

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