Gross mortgage lending in December reached an estimated £11.7 billion, according to the Council of Mortgage Lenders (CML).
This brings the estimated total for the year to £143 billion, up from £141 billion in 2011. In 2013, the CML forecasts gross lending will reach £156 billion.
CML chief economist Bob Pannell said: “We are more positive about the UK housing market and wider economy than a year ago, despite economic headwinds and downside risks.
“A key reason is that lenders currently face few funding pressures, in part reflecting the funding for lending scheme.
“House purchase activity was robust in the fourth quarter, on the back of better mortgage availability and pricing, and we expect this to continue over the coming months.”
Peter Williams, executive director of IMLA, added: “A lull in mortgage lending is always to be expected in the last month of the year, but surpassing the 2011 annual gross lending total justifies the positive outlook that IMLA, CML and others have for 2013.
“Given that activity dropped off by £1.5bn between the third and fourth quarters of 2011, an improvement of £176m in the CML figures over the equivalent period last year marks the start of what should develop into a more substantial recovery in 2013.
“As demand returns and the Funding for Lending Scheme gains momentum, it presents lenders with a real chance to develop new product offers that can meet consumers’ varying needs. With innovation being key to gaining an advantage in the market, IMLA members will be at the forefront of this effort and the resulting competition should give brokers plenty of options to consider for potential borrowers.”
