The annual rate of mortgage lending growth in Ireland has hit a 21 year low, new figures have revealed.

Statistics from the Central Bank show that last month's dip in new mortgages ebbed the sector into a major slump.

Lending for residential mortgages in August only increased by 9% on the previous year. This represented the smallest annual growth since mid-1987.

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The cost of mortgage borrowing last month totalled €508m, this was around half that recorded for July.

Despite August normally being a quiet period for the industry, Central Bank officials suggested this year's results were "exceptionally low".

Private credit rates fell to a six-year low in the same month.

The bank recorded an annual growth of 12.9% during August.

This was reflected in new spending and repayments on credit cards, which the Central Bank said was lower in August than July.

(PR/JM)