Mortgage loans are being granted half as less as a year ago according to new figures. In fact, in June 2007 98,000 home loans were granted but exactly a year on only 47,000 were granted.

The figures come from the Council of Mortgage Lenders (CML) and provide further proof that the credit crunch shows no sign of abating. Worse still, it is a trend that will not be changing anytime soon according to the CML.

The credit crunch has meant that borrowers are far less happy to grant mortgage loans as before. Only those prospective homeowners with sizeable deposits are more likely to be approved as they are considered less of a credit risk.

First time buyers have been hit where it hurts with almost 10% more of their applications being declined than just a few months ago. Prudency is not being practised by them either, with the average first time buyer borrowing almost 3 and a half times their income.