Last month’s slowing in mortgage lending could spell bad news for borrowers, one firm has claimed.

Price comparison service moneysupermarket has asserted that the mortgage industry is shrinking – meaning that lenders are looking elsewhere to cut costs and increase profits, including in lending such as personal loans.

The company was reacting to the latest figures from the Bank of England, released yesterday, which reveal that net lending to individuals last month stood at 11.2 billion pounds. While the figure is higher than August – and exceeds the previous six-month average – the growth rate remains unchanged suggesting a slowdown in the sector. Annual growth maintained at 10.0 per cent, while the three-month annualised growth rate rose only slightly, by 0.1 per cent to 9.6 per cent. More >