Following last week's release of MBBG net lending figures for October, further information now available on lending to individuals shows that:

Gross mortgage lending was £15.1bn in October. This was £1.2bn lower than September and 15.2% lower than in October 2003 - the second successive year-on-year fall.

The number of loans approved for house purchase was 1.5% lower than September and 35% lower than October 2003. Approvals for equity withdrawal were much weaker in October but remortgaging held up. The average approval for house purchase rose to £113,100, after falling in each of the last three months.

David Dooks, BBA director of statistics, said: "The weakening demand for both mortgage lending and consumer credit seen over the last few months continued in October and weak approvals data suggest that this pattern will be maintained in the short-term."

"With mortgage lending volumes slowing it is not surprising that competition among lenders is intensifying and at the same time, borrowers are looking to reduce their borrowing costs. As a result, re-mortgaging is holding up and accounted for a high 39% of all approvals in October."

Mortgage lending

October's gross lending of £15,089mn was 7.3% lower than September's total and compared with £17,803mn in October 2003.

Net mortgage lending rose by £4,403mn. This was very similar to the underlying rise in September and recorded the third successive month of similar growth.

Compared to the same month a year earlier, October's approvals of house purchase loans were 35% lower by number and 32% lower by value; remortgaging loans were 16% lower by number and 5% lower by value; and equity withdrawal loans were 46% lower by number and 45% lower by value.

Consumer credit

New borrowing on credit cards totalled £7,173mn in October. This was the lowest since February and some 8.6% weaker than the average of the previous six months. Repayments continued to hold up so that a seasonally adjusted increase in net lending, of £351mn resulted; well down on the recent average (+£470mn).

New lending on personal loans and overdrafts, at £2,767mn, was slightly down on the average for the previous six months. After seasonal adjustment, the rise in net lending of £262mn, well below the average rise of £469mn over the previous six months.