UPDATE 1-Bellway says trading testing since October

*Cancellations running at historically high levels

*Net sales rate more than 50 pct below last year

*Order book at end of Nov. 340 million pounds

(Adds detail from statement)

LONDON, Dec 4 (Reuters) - British housebuilder Bellway Plc. (BWY.L) said trading had been extremely testing since October due to a lack of confidence and difficulties faced by homebuyers in securing mortgages, despite UK government attempts to help ease the situation.

Cancellations of planned house purchases were running at historically high levels of 24 percent and visits by potential buyers to sales sites had fallen about 50 percent compared with last year, Bellway said in a trading statement on Thursday.

The Newcastle-based group said its overall net sales rate was running at 50-60 sales per week, which was in line with its expectations, but more than 50 percent below last year's levels.

It said its order book at the end of November was 340 million pounds, against 677 million a year ago, and it had secured 75 percent of its current annual target.

Pricing pressures could cause further margin erosion and may lead to a further review of the book value of land and work in progress at the end of January next year, the company said.

Bellway said its plan to cut borrowings from July 31, 2008, to July 31, 2009, by 100 million pounds was on target.

"The group remains completely focused on conserving cash and positioning the business to benefit from any positive upturn in the market," it said.

(Reporting by Philip Waller; Editing by Erica Billingham)