By Charlotte Beugge

Britain's building societies and mutuals advanced £2.5 billion in mortgages in November - up from £2 billion during the same month a year earlier.

It was also the highest monthly figure recorded since the Building Societies Association started collecting figures on the current basis since January 2010.

There was a 16% increase in gross mortgage lending in the first 11 months of the year, with a total of £21.5 billion advanced in home loans compared with £18.6 billion in the comparable period in 2010.

However, building societies saw the amount they took in savings fall slightly in November compared with the previous year. In November 2011, savings balances rose by £500 million compared with £600 million in November 2010.

But over the whole year, building societies benefitted from increased savings balances. In the first 11 months of 2011, societies' savings balances increased by £3.7 billion, compared with a decrease in balances of £1.3 billion in the same period in 2010.

Commenting, Adrian Coles, director-general of the Building Societies Association, said: "The new year has seen some excellent mortgage products go on sale from mutuals with a return to some offering higher loan-to-value (LTV) mortgages.

"These are encouraging trends against rather discouraging developments in the wider economy."

Indeed, Coventry Building Society has just launched a range of new mortgage deals including a five-year fixed-rate at 3.58% on 65% LTV with £999 fees and a first-time buyers' five-year fix at 5.25% on 90% LTV with £199 fees and £500 in Ikea vouchers.

The five-year rate compares with the current cheapest on the market - First Direct's 3.28% also on 65% LTV, but with a hefty fee of £1,999 - so first-time buyers needing relatively small mortgages might well be better off with the Coventry deal even if the pay rate of 3.58% is higher.