Gross mortgage lending rose by five per cent in November, according to the Council of Mortgage Lenders (CML).

Gross mortgage lending rose by five per cent in November, according to the Council of Mortgage Lenders (CML).

An estimated £28.5 billion was lent during the month, the second highest figure recorded, after the £28.9 billion posted in July 2004.

High levels of remortgaging, which, according to the Bank of England, have hit record levels in the past six months and a general recovery in the housing market, are thought to be behind the increase.

CML director general Michael Coogan said: "The housing and mortgage markets have clearly strengthened significantly from the lows of a year ago.

"There have been upward trends in gross mortgage lending and approvals and more stable house prices in recent months."

The numbers are up 30 per cent on 12 months previously.

However, experts warn that lending could drop in the latter part of the new year, as rising house prices and modest transaction numbers return the figures to average levels.