'1bn DROP IN MORTGAGE LENDING

By Nicky Burridge, Personal Finance Correspondent, PA News

Mortgage lending fell by '1 billion during May as the booming housing market finally showed signs of slowing down, figures showed today.

The Council of Mortgage Lenders said total advances for the month dropped to '23.8 billion, down from '24.8 billion in April.

The figures were supported by statistics from the British Bankers' Association which showed the smallest monthly rise in mortgage advances since November last year.

The group said lending by the major banks increased by '4.86 billion during the month after redemptions and repayments were taken into account, well down on April's jump of '6.11 billion.

The CML said the drop in lending had been largely driven by a fall in people taking out a mortgage to buy a house, with lending for house purchase '1.2 billion lower than it had been in April.

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