The latest research by the British Bankers' Association (BBA) shows mortgage lending rose more slowly and approvals, particularly for house purchase, were significantly lower in October.

Unsecured lending remained very subdued and personal deposits were weak. Lending to companies was above recent trends.

BBA statistics director, David Dooks, said: "October's data provide evidence of a rapidly slowing mortgage market and of consumers limiting their personal borrowing. Pressure on household finances, the cumulative impact of interest rate rises over the last year, the expanded application of home information packs and the consequential impact of the credit crunch may well all have a part to play in suppressing current demand and supply.


"Personal deposits also remain below trend, as people continue to consider where they should hold their money in the light of the recent difficulties in the financial markets."

The BBA is the leading banking and financial services trade association and represents its members from 60 countries, on domestic and international issues.

(GK/JM)