Despite efforts to increase spending amongst the UK’s masses, home loans have remained close to the record low, with consumer credit rising at its slowest pace since the early 1990’s. It appears the current crisis is still forcing lending institutions to look closer at those they are offering loans to as they are still tightening their lending criteria which is bringing the country ever closer to a recession.

All is not doom and gloom as numbers look to be getting restored, perhaps not to their former glory but any increase is very much welcomed.  The month of August saw approved home loan lending drop to a meagre 32,000 where as last month saw 33,000 home loans approved by lending institutions. The outlook for the UK economy is worrying many, this is made worse by the news that consumer borrowing rose by only 0.1 percent on the month.

The collapse of the Lehman Brothers Holdings Inc. last month compelled many lenders to tighten their belts even further, refusing to lend to one another and to households, began the decent towards the country’s recession. The Bank of England have predicted that in less than two years, ten per cent of mortgage holders will owe more than their properties are worth.