Bank of England figures show mortgage lending in November was 10% of last year's level

The Bank of England has reported that approvals of new mortgages dropped to a record low in November. The number of approvals stood at 27,000, compared to 75,000 at the end of 2007.

Net mortgage lending for November was higher than October, but nevertheless represents one of the lowest levels ever reached, less than 10% of the £8bn total recorded in the same month in 2007.

The Bank of England's credit conditions survey revealed that banks and building societies intended to cut back on lending to businesses and individuals, which will include mortgage lending.