Brits borrowed a total of £362 billion from mortgage lenders in 2007, new figures released by the Council of Mortgage Lenders (CML) have revealed.

While this represents a five per cent increase on the total amount lent in 2006, the organisation said that December saw gross lending fall to its lowest levels since May 2005 as the impact of the credit crunch continued to be felt.

However, Michael Coogan, the director general of the CML, suggested that it could become easier to obtain a mortgage over the new few months, particularly if the Bank of England reduces the base rate.

"Despite the funding constraints caused by global conditions, the UK mortgage marketplace remains highly competitive and there will continue to be a range of good deals available to better risk borrowers," he said.

Simon Rubinsohn, a senior economist as the Royal Institution of Chartered Surveyors, warned that first-time buyers may feel the pinch for a while yet, even if interest rates fall.

"With many lenders scaling back on loan to value ratios, the need to find even larger deposits could prove a more powerful obstacle for those hoping to take their the first step on the property ladder," he said.