Virgin Money has secured financial backing as it seeks to press ahead with a bid for British banking assets, the Daily Express reported on Monday.

Subprime lender Provident Financial posted lower-than expected profit in the full year as customers were more cautious in their borrowing habits, a trend which is likely to continue in 2010, it warned.

Lenders approved fewer mortgages in January, data showed on Monday, exacerbating a slide in sterling despite otherwise upbeat figures on consumer credit, mortgage lending and manufacturing activity.

LONDON (Reuters) -Sterling sank to a 10-month low against the dollar on Monday and looked set to post its biggest one-day drop in more than a year after polls showed a growing chance that an upcoming general election may result in a hung parliament.

Consumer and mortgage lending rose faster than expected in January, though mortgage approvals dipped due to tax changes and poor weather, Bank of England figures showed on Monday.