The British Bankers' Association says mortgage approvals fell 41 percent last month compared with the same month a year before.

In November lenders approved 47,095 mortgages contrasted to 59,011 in October and 80,414 in November 2003.

The figure for November 2004 is the lowest since January 2001 when 44,719 loans were approved, the BBA said.

"Weaker mortgage lending in November continued the pattern of reduced demand that we have seen over the second half of this year and there is little to suggest that mortgage appetites will change in the near term," a BBA spokesman said.