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Bank of England: Lending drops

Latest monthly loans lending figures have been released by the Bank of England.

According to the new report, mortgage loan approvals dropped by 1,000 to around 73,000 from January to February.

This marks one of the lowest levels since records began in 1999 - further evidence that the UK housing market is slowing.

Speaking to the Bloomberg news agency, Bank of America economist Matthew Sharratt said that the new report showed that loans were being "rationed" by lenders.

"Clearly, the housing market will remain depressed," he added.

The figures could also increase the likelihood of the bank cutting the base rate of interest when it meets next week.

Two separate cuts of 0.25 per cent each have been administered over the past six months, in a bid to stimulate loans lending.

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