Mortgage lending slows in the UK - rising rates drive up the cost of living

The number of approved mortgages in the U.K. fell more than forecast in June, and consumers have sharply reduced borrowing, indicating that the crisis is increasingly squeezing the economy.

However, consumer credit is on the rise. The surge in consumer loans may partly reflect the plight of people struggling to make ends meet, Bloomberg reports.

A study by the Office for National Statistics found that more than a fifth of adults reported having to take out more credit in the past month.