Bradford & Bingley became the latest high-street bank to hit the wall today, with the Government being forced to step in and save the company from collapse.

The bank, which specialised in buy-to-let mortgage deals, became the second bank this year to come under national control following the collapse of Northern Rock back in February.

The effects of the credit crunch were being felt once again throughout August, with a 64% drop in the number of approved applicants compared to the same time last year.

The British Bankers' Association (BBA) said that just 21,086 mortgages had been approved for house purchases in August, down from 58,564 in the same month last year.

The figure is the lowest since records began in September 1997.

The Association, which represents two thirds of mortgage lenders in the UK, said that falling property prices and the state of the economy would continue to have an impact.