UK Mortgage Lending Up by 12% in December 2011

According to the latest report by the British Bankers' Association, the amount of money given out in mortgages in December 2011 was 12% higher than at the same time last year.

Other forms of lending, however, did not demonstrate such a significant rise in volume due to the cautious approach of borrowers.

Commenting on the findings, Mr. Dooks of the BBA, said: "The household` sector generally is focusing on debt repayment amid inflated household expenses and a continuing air of uncertainty, so we see a reluctance to let net borrowing rise, with people referring to use their bank account cash for expenditure."

Other reports support the findings of the British Bankers' Association. However, property experts are still skeptical about the growth in this sector in 2012. As such, Mr. Brown of LSL Property Services said that "it’s difficult to see how far gross lending can increase this year, given the state of the wider economy."