Mortgage lending slumped to £12.4bn during January - that is 52% below the same time last year.
The figure was also 8% down on December.
The Council of Mortgage Lenders said total of £12.4bn was advanced by the major mortgage lenders during January.
The group said there was normally a slight decline in lending levels between December and January.
But it added that the figure was the lowest monthly level recorded since April 2001. SKY NEWS