Mortgage lending has continued to rise.

The latest Main British Banking Group figures, which include 12 of the biggest mortgage lenders, show gross mortgage lending totalling £9.4 billion in January.

Net lending rose by 1.1 per cent, the largest monthly rise seen yet, to £385.1 billion.

Forum Response: British Bankers' Association

Ian Mullen, chief executive of the British Bankers' Association, told ePolitix.com: "Annual mortgage lending has been higher than the previous year in each of the last three and 2002 looks to be heading the same way.

"Despite a slower housing market at this time of year, there was firm demand for re-mortgaging and equity release products, and credit card repayments were strong. This all reflects the fact that we are seeing signs of more financially-aware customers, shopping around for financial products and understanding them more clearly.

"But there will always be some borrowers who find themselves unable to manage the debt they have taken on, so, as part of a package of advice and education, the banking industry is working with government and others to launch a National Debt Line pilot scheme in March. The NDL will be staffed by experts giving free independent advice to people wanting to manage their debts better."