Mortgage values falling

The average amount borrowed by those taking out mortgages has reached a peak, according to Moneyextra.com.

It is thought that this points to a levelling off of house price growth, as homebuyers need to borrow slightly less than they did during the summer months.

In July, the average mortgage was £151,488.09. This rose to £151,709.75 in August and then fell to £151,464.16 in September.

Robin Amlot, senior editor of Moneyextra.com, said: "It's becoming clear that the mortgage market peaked in May this year and was already on a downward trend before the summer credit crunch hit.

"A house price crash remains unlikely but the rapid slowdown in activity in the mortgage market may feel like a crash to some.

"It's not all doom and gloom for some borrowers: those with blemish-free credit records can still take advantage of highly competitive interest rate offers. But life has become harder and significantly more expensive for the rest."