Mortgage approvals fell to a fresh record low in November and banks reduced loans to households and businesses in the final three months of 2008 as a deteriorating economic outlook and falling house prices deterred lending, according to data from the Bank of England released on Friday.

Mortgage approvals fell to a record low of 27,000 in November from 31,000 the month before, the Bank of England said. That was below expectations of 32,000 approvals and the lowest figure since the report began in 1999.