Mortgage lending by the main banks fell to a record low in August, according to figures released by the British Bankers Association (BBA).

The BBA found approvals for house purchases were down by 64% on August 2007, as banks tightened lending criteria and homeowners chose to stay put.

The number of mortgages approved slipped from 58,564 to 21,086, while applications for remortgaging also fell by 28% to 47,765, the lowest level since 2001.

"Falling property prices, economic pressures on households, tighter lending criteria and anticipation of the government's announcement on stamp duty all suppressed or delayed demand in August," said David Dooks, statistics director at the BBA.