Last month's lending level was 36 percent down on the year, new figures have shown.
Mortgage lending in the UK has fallen again, new figures revealed today.
The data release, from the Council of Mortgage Lenders (CML), found that the total value of mortgage credit extended by providers was £21.8 billion in August. This is 12 percent down on July, 36 percent down on August 2007 and the lowest monthly total since April 2005.
When seasonal trends are taken in to consideration, the decline seems even worse, as the new total is the lowest August on CML record since 2002.
Restrictions on mortgage lending from providers due to the credit crunch, as well as a tapering-off of buyer demand due to falling house prices and tightening budgets, are thought to be behind the downwards trend.
Michael Coogan, director general of the CML, said: "These figures reflect the heightened uncertainty for both lenders and consumers in the mortgage market at present. Lenders are uncertain about future sources of funding and the cost of funding, while consumers are unsure about how much further and for how long house prices will continue to decline."
According to figures from lenders Nationwide and Halifax, the average UK home is worth over ten percent less than it was last year.
