From the illustrious FT.com / World

Mortgage lending could fall by half this year unless the Bank of England immediately frees up additional funds, warned the Council of Mortgage Lenders on Friday.

The organisation said there was a “real and immediate need for broader based action than we have seen to date”. It thought lenders were hoarding funds as they were concerned over access to future funding.

In October the CML predicted a 15 per cent slowdown in net lending in 2008, from £108bn to £90bn. Its forecast has deteriorated as borrowing demand has since significantly exceeded the industry’s capacity to supply funds.

“It is… a real possibility…that net lending in 2008 could reach only half last year’s level unless additional funds become available,” said Steven Crawshaw, chairman of the CML.

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