The twelve-month growth rate for net lending fell to 0.9%.
The three-month annualised growth rate fell to 0.8%, from 1.1% in March.
Mortgage approvals were up marginally in April, at 49,871, a small rise from March’s 49,008, but still well below the previous six month average of 53,098.
Yesterday Land Registry house prices showed an annual increase for the sixth month in a row, with a rise of 8.5% in April.
This is the highest annual change figure recorded since September 2007. The monthly rise in April was 0.2% taking the average property value to £165,596.
Sales volumes averaged 53,137 per month from November 2009 to February 2010 according to the Land Registry.
Transaction volumes are showing a marked improvement this year with the same period the year before showing the figure at 32,089.
Approvals for remortgaging (26,295) were lower than in March but in line with the previous six-month average (26,203), while approvals for other purposes (24,823) were also lower than in March and below the previous six-month average of 26,212 said the Bank of England.
David Whittaker, managing director of commercial broker Mortgages for Business, said he didn’t expect to see the mortgage market improve radically over the next few months, but he didn’t predict further falls either.
He said: “Between election campaigns and ash clouds, the mortgage market has had a lot to deal with over the last few months. The latest lending figures show a slight improvement but progress will be slow this year – particularly with recent Korean sabre rattling yet to be thrown into the mix.”
Paul Hunt, managing director of Phoebus, the mortgage software provider, said: “It’s great to see mortgage lending creeping up although the figures show the continued sluggish nature of the housing market in 2010.”
And Brian Murphy, head of lending at independent mortgage broker, Mortgage Advice Bureau, added: "Although house purchases are still low in historical terms, they are slowly but surely moving upwards and reflect the continuing improvement in borrowing conditions.
"Lenders still have tough criteria but there is increasingly more competition and, crucially, an appetite to lend to quality borrowers with good credit histories and acceptable deposits. The competitive rates available are flowing through into the number of people who are prepared to buy.
Whittaker agreed saying: “With more lenders like Aldermore and Precise Mortgages entering the market and others like Link Loans increasing their appetite to lend competition is set to rise. It’s not going to be a golden year but it could be a lot worse.”
Murphy was more stoical. He said: "Nobody can deny that the mortgage and property markets are still very delicately balanced.
"This month's Budget and growing question marks around the base rate, specifically how long it will stay at its current level, could easily apply downward pressure on both."
