//
The drop in mortgage approvals saw levels drop in October to match the lowest since the series began ten years ago.
Banks have been forced to clamp down on mortgage lending as the global economic slowdown has put the squeeze on the housing market.
House prices have already plummeted around 15 per cent from their 2007 peak and there is little sign that their downward trajectory is likely to be reversed any time soon.
In related news, the Financial Services Authority (FSA) has warned lenders to review their repossessions processes.
FSA retail managing director Jon Pain said in a letter: "In such a challenging operating environment it is particularly important for senior management to ensure the fair treatment of customers, including when they go into arrears."
