UK mortgage lending slowed again in November, with £500m less lent by high street banks than in October, figures have shown.

Data from the British Bankers' Association (BBA) showed £4.3bn was lent by high street banks in November, with mortgage approvals some 44% less than those in the same period last year.

It is thought to be fresh evidence that the housing market is continuing to cool following a series of interest rate hikes and the global credit crunch.

The Bank of England did cut rates by 0.25% earlier this month, and experts predict further reductions will follow before the end of next year.

The BBA also revealed that consumer credit increased in November, with a marginal rise in unsecured lending.

However the body added that repayments were continuing to outweigh new spending figures.

BBA statistics director David Dooks said: "Mortgage activity is notably lower than this time last year.

"Judging by the significantly lower number of mortgage approvals in October and November - partly resulting from lower demand, partly from tighter supply - the market is likely to continue slowing in the coming months."

Meanwhile, Bank of England data showed that UK homeowners released some £10.5bn from the value of their homes in the latter part of 2007.

Although this figure is £500m more than that in the summer period, it is still well below a peak of £13.5bn in the final quarter of 2006, increasing doubts over future house prices and expensive remortgaging.

Howard Archer, chief UK economist at Global Insight, said: "The weak mortgage data provides yet further evidence that housing market activity is now slowing markedly in the face of stretched affordability, as well as the tightening lending practices resulting from the credit crunch."

He added that the current trend in releasing housing equity could continue over the coming months if concerns continue to rise over the rapidly stalling housing market.

"Housing equity withdrawal seems set to moderate significantly further over the coming quarters in reaction to markedly softer house prices, adding to the increasing pressure on consumer spending."

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