April figures show mortgage approvals are plummeting, debt is spiraling and banks are withdrawing mortgages on offer.
Bank of England figures show consumer credit had its sharpest rise in five years to almost £227 billion. Mortgage approvals dived by nearly 40 per cent in a year – the second lowest level in 15 years. There were also warnings that 3 million households could fall into negative equity within a year.
The Co-op bank announced it was suspending a range of mortgages. This followed moves by First Direct, which has withdrawn its entire range for new customers. There are now 4,794 products available on the market compared with 7,726 a month ago.