Mortgage Lending in Britain Mirrors U.S.

London, England, Nov. 20, 2008--Mortgage lending in Britain was down 44 percent in October compared to a year ago, the Council of Mortgage Lenders said Thursday.

Gross lending last month totaled 18.7 billion pounds ($27.8 billion), down from 33.4 billion in October of 2007, the report said.

Banks reacting to a global credit crunch have tightened up on lending, requiring larger deposits and higher rates of interest which have frozen many potential buyers out of the housing market. That in turn has added to downward pressure on house prices.

"The outlook is one of continuing weakness for housing and mortgage markets in the coming months," said Michael Coogan, director general of the council. "Consumer confidence is now being affected by the worsening economic outlook."