MORTGAGE lending last month fell to its lowest level since April last year, official figures showed yesterday.

Lending secured on homes fell to £7.7bn last month from £8.4bn in August, according to monthly lending figures from the Bank of England.

Mortgage approvals during the month also fell, to 89,000 from 95,000 in August - the lowest since August 2000. The value of all loans approved was £21.8bn, £1.6bn weaker than in August.

The figures confirmed that the housing market was slowing, analysts said.

John Butler, of lender HSBC, said: "The question is whether this slowdown is the start of a correction, or a return to more normal levels."

Total lending to individuals grew by £9.4bn, or 0.9 per cent, in September, £0.9bn weaker than the increase in August.

Consumer credit grew by £1.6bn, or 0.9 per cent, last month, £300m less than the previous month's £1.9bn, although total personal borrowing is still 14 per cent higher than a year earlier.

Mr Butler said: "The message is simply that household borrowing is still rising, but just at a slower pace than earlier in the year."