Mortgage lending was subdued last month and the effects of the credit crisis are likely to mean a 'testing time' for the market, according to the lastest industry reports. The Times

The Council of Mortgage Lenders said it believed that mortgage lending would be constrained as the financial turmoil puts lenders under pressure, although its latest figures showed that the market remained healthy last month despite the credit squeeze.

Gross mortgage lending grew to an estimated £32.4bn in October, it said, up by nearly 6% from the previous month, higher than a 3% rise normally seen at this time of year.

The group said that the figure was a reflection of applications and approvals initiated before the mortgage market became affected by wholesale funding problems. It forecast that advances would be lower over the rest of the year.