Lending to individuals increased last month but at a slower rate, figures from the Bank of England show.

In its latest update Britain's central bank said consumers borrowed an additional £8.8 billion in October.

This increase was, though, down on September and down on the six-month average.

Home loan approvals fell month-on-month, along with remortgaging agreements and other purchases.

The £12.2 billion in approved home loans was a drop from £14.7 billion in September and was also below the six-month average of £16.1 billion.

The figures will add further weight to claims that the credit squeeze is beginning to impact upon both the availability and appetite for credit.

The latest house price survey suggests that the market has stalled, while more than one-third of British consumers are said to be worried about the economy.

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