The amount of money lent to Britons in the form of unsecured loans is slowing, according to new figures.

Data compiled by the British Bankers' Association (BBA) shows that many consumers are looking to limit their borrowing in the wake of the credit crunch.

Unsecured loans are "very subdued", the organisation observes, while secured loans have also decreased in popularity.

Among the forms of lending which remain popular is equity release, which can free up some of the value held in property.

While the number of loans approved for house purchases has fallen by 37.4 per cent since last year, those used for equity withdrawal have decreased by 20.3 per cent.

And the average value of a secured loan arranged for equity release now stands at £29,600 - up 6.8 per cent on last year's figures.

The BBA adds its support for a review of the Banking Code which the organisation advises will see greater assistance provided to individuals facing financial difficulty.ADNFCR-1287-ID-18370338-ADNFCR

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