Building Society mortgage lending falls 90%

The amount of money lent by building societies has been steadily declining since the beginning of the year, but has fallen rapidly over the past month. The figures show net lending by building societies fell from £1,262m in May 2007 to just £125m in May 2008. Furthermore, lending fell 81% during May from £666m, indicating a rapid tightening of lending criteria among building societies. Earlier figures from the Bank of England suggest total mortgage lending fell by 64% over the last twelve months, while the British Bankers Association noted a 56% fall. Adrian Coles, director general of t...