UK mortgage lending soars to record high

Mortgage lending soared to its highest level on record during November, but increases in consumer credit crashed to a five-year low, figures showed today.

A total of £27bn (€39.3bn) was advanced to people through new home loans during the month as the housing market continued to show signs of strengthening.

The figure remained strong once redemptions and repayments were stripped out, with outstanding mortgage debt rising by £8.69bn (€12.64bn) – the biggest increase since July 2004, according to the Bank of England.

But at the same time consumers’ appetite for debt showed signs of diminishing, with the rate at which people borrowed money through credit cards, loans and overdrafts falling to its lowest level since December 2000.