BBA reveals latest mortgage stats

The current property market "slowdown" and weakness in house prices" are a result of a combination of factors, according to the British Bankers' Association (BBA).

A weakening in mortgage lending during the second half of 2007 and a reduced demand for mortgages due to the higher cost of borrowing are partly responsible for the current situation, the organisation states.

BBA director of statistics David Dooks suggests the credit crunch "impacted on banks' ability to lend", while it is said that people in the UK had less of a disposable income in the latter part of the year.

Commenting further, he said: "Reports of high street sales over the Christmas period were mixed, but our figures show consumer borrowing to have been muted in December."

Earlier this week, the Council of Mortgage Lenders revealed that 2007 proved to be "the strongest-ever year for gross mortgage lending", as it reached an estimated £362 billion - up five per cent year-on-year.

Echoing similar sentiments to the BBA, CML director-general Michael Coogan remarked: "The credit crunch moved into its fourth month in December and continued to constrain the cost and availability of funds to lenders and, in turn, the cost and number of mortgage products available to borrowers."