Mortgage lending slows in UK

The rate of UK house-buying is set to fall again in the next few months, experts warned yesterday, after new data showed the faltering recovery in UK mortgages ground to a halt in July.

Bob Pannell, chief economist of the Council of Mortgage Lenders (CML), said Britain had been hit by the effects of the sovereign debt crisis in the Eurozone, which has slowed activity in the wholesale funding markets. He warned that the market could “drift lower “ in the coming months. He was speaking as CML figures showed gross mortgage lending in July hit £12.6bn, down a single percentage point from £12.68bn in June and six per cent below the £13.3bn recorded in July last year.