CML records rise in mortgage lending for November

The need for homeowner insurance is likely to have risen in November, when loans for home purchases saw a noticeable increase.

According to the latest figures from the Council of Mortgage Lenders (CML), house purchase lending saw both a monthly and yearly rise in November. There were 47,000 loans granted for purchase in the month - worth £6.9 billion.

This represents a four per cent rise in the number of loans granted in October and a three per cent rise compared to the same month in 2010. This is only second year-on-year rise recorded for 2011 and suggests that new property insurance will have been more in demand than in most other months of the year.

CML director general Paul Smee said: "A rise in mortgage lending towards the end of 2011 is a welcome indicator for the industry considering confidence has been weak due to fragile economies both at home and in the Eurozone."