Dublin - Ireland's Central Bank said Tuesday that mortgage- lending had reached its lowest level in 21 years in August.

Lending for residential mortgages was up just 9 per cent compared to August 2007, which is the lowest growth rate since
1987.

The increase in August was less than half the increase in July, according to the Central Bank, which described the figure as "exceptionally low."

"Although house prices have been falling for 18 months - the Permanent TSB/ESRI house price index recorded an annual decline of 10 per cent in August - more affordable houses have not yet boosted residential mortgage borrowing," the bank said in a statement.

The increase in new private sector credit hit a six-year low in August, rising just 12.9 per cent, the Central Bank said. (dpa)