Record year for home loans

Mortgage lending slowed last month but failed to prevent 2001 from being a record-breaking year. And while home loans activity dipped in December, other personal lending such as credit card borrowing soared to a new record - rising by more than £1bn for the first time.

Gross mortgage lending fell to £14bn in December from £15.4bn in November, said the Council of Mortgage Lenders. Despite the end-of-year slowdown, however, total mortgage lending in 2001 reached a record £161.5bn in gross advances - 35% higher than the 2000 figure of £119.6bn.

Remortgaging accounted for almost a third (31%) of last year's total as more homeowners took advantage of competition in home loans to find a better deal.

Figures from the British Bankers' Association released yesterday showed that personal lending excluding mortgages, increased by £1.08bn in December, the first time the monthly change figure has exceeded £1bn.