The increase in net lending secured on dwellings of £0.7 billion was higher than the October increase, but below the previous six-month average of £1.9 billion. The twelve-month growth rate slowed further, to 3.9%.
The numbers of loans approved for house purchase 27,000 (31,000), remortgaging 42,000 (72,000) and for other purposes 32,000 (34,000) were all lower than in October and lower than their previous six-month average of 34,000, 74,000 and 40,000 respectively.
Liberal Democrat Shadow Chancellor, Vince Cable said: "It is understandable that when house prices are falling and are expected to continue to fall for some time that borrowers will hold back rather than risk finding themselves in negative equity.
"Nonetheless it does appear that the inevitable big correction in the housing market is being exaggerated by the complete collapse of mortgage lending by the banks.
"The Government is completely paralysed at this crucial moment.
"Ministers should consider promoting a simple, standardised mortgage with a market guarantee for the first few years of interest payments in order to help first time buyers who can genuinely afford to take on home ownership.
"The role of Northern Rock, which is a nationalised mortgage lender must be reconsidered. It is currently totally committed to running off its loan book and avoiding new lending. This strategy may have made sense at the beginning of last year, but increasingly makes no sense in the very different environment we now face.
"The Liberal Democrats continue to believe that the urgent priority is to stop the complete collapse of the house building industry. The Government must take advantage of the slump in land prices to get housing associations and councils back into the business of commissioning new social housing.
