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Just 38,704 mortgages were issued by UK banks during April, nearly 40 per cent lower than at the same time last year, according to the latest figures from the British Bankers' Association (BBA).

That said April's figures did show a slight increase from the 35,546 loans issued in March – an all-time low - but they are still 39.4 per cent lower than the same period last year.

"Despite April's modest rise in mortgage approvals, the BBA data are still very weak and indicate house buying remains under severe pressure from the damaging combination of stretched affordability and tight lending conditions," explained analyst Howard Archer at Global Insight.

Some £5.9 billion was lent for house purchases during the month, again down 39.1 per cent from last year.

Lending on credit cards has, however, increased over the last year.

Some £7.4 billion was lent in this manner during April, up from £7.3 billion in March and representing a 4.9 per cent increase on 2007.

According to the BBA figures 105.1 million purchases were made on plastic last month.

A further £2.5 billion was issued in personal loans and overdrafts during April, with £66.9 billion now outstanding.

Personal deposits in UK banks rose strongly in April with the banks receiving a record net inflow, partly reflecting stronger ISA deposits than in previous years, but also reflecting a response to the higher rates of return currently available on high street accounts.

"Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year," said BBA statistics director, David Dooks.

"In contrast, there is an active remortgaging market as people switch lenders to obtain better deals.

"With some £18bn of new lending and nearly 150,000 loans approved in April, it is clear that, contrary to some reports, the mainstream mortgage market has not ground to a halt," he added.