Mortgage approvals in the UK hit their highest level in five months in November, the British Bankers' Association said today.

The value of mortgage approvals jumped from October's £10.82 billion to £11.43 billion, the highest since June. The figures follow news from the Council of Mortgage Lenders earlier this month which also singled out November as a month of rapid growth, when mortgage lending reached a record high at £33.1 billion.

David Dooks, director of statistics at the bankers' association said the high level of approvals, often taken as a signal of future demand in the housing market, suggests lending will remain strong.

He said: "In the mortgage market, the high number of loans approved in November, which is not usually a strong month, suggest that the trend in mortgage lending will continue to be robust over the next few months."

The marked increase in mortgage lending was accompanied by a cooling in consumer borrowing, indicating that people are more willing to borrow against their homes than take out unsecured loans or credit cards.

According to the association, consumer credit growth was up by just over 2 per cent, well below the level this time last year. Lending on loans and overdrafts fell by £100 million between November and October, in contrast with the recent monthly average rise of £400 million, and credit card borrowing rose by just £100 million.

Howard Archer, chief economist at financial analysts Global Insight, said that "muted" consumer borrowing in November "was clearly a consequence of consumers striving to find less expensive ways of financing their spending, and switching more to secured borrowing".

He added that, with concerns about interest rates, pensions and unemployment, "there is an increased need for many consumers to try and improve their finances".

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