Mortgage lending picks up again (UK)

The CML said this was the second highest figure on record and was 30% higher than a year ago.

Separately, the British Bankers' Association (BBA) said net mortgage lending, which strips out redeemed mortgages, rose by £5.1bn last month.

That was the biggest increase since July 2004 and was higher than the average monthly figure of £4.4bn seen over the last six months.

The BBA's director of statistics David Dook said: "November's above average rise in mortgage lending reflects the recent upturn in approvals and provides more evidence that the mortgage market bottomed out in the summer and is now being underpinned by steady demand."

Remortgaging

Normally, demand for mortgages tails off towards the end of the year and then revives in the spring as people start house hunting again.

However, the CML pointed out that the figures were being bolstered by high levels of remortgaging.

This happens when people stay put but simply move their mortgages to another lender to take advantage of a more favourable deal.

Although he described the housing market as robust, the CML's director general, Michael Coogan, cautioned against expecting a big rise in prices next year.

"While it could be tempting to assume this strengthening will continue," he said, "our expectation for the coming year is of relatively subdued transaction levels, mortgage lending moderating a little from recent levels, and house prices rising by about 2%."