By Robert Adungo

Britain's mortgage lenders advanced £11.7 billion in home loans in December, according to the Council of Mortgage Lenders (CML). This was 12% lower than November's figure of £13.2 billion, but co-incidentally was 12% higher than the December 2010 figure of £10.5 billion.

For the final three months of 2011, total lending was £37.3 billion, which was down from £39.2 billion in the previous quarter but was 11% higher than in the comparable period in 2010 when £33.6 billion was advanced.

The CML is estimating that for 2011 as a whole, mortgage lending will be about £138 billion. This is above the CML's forecast of £140 billion, but is up 3% from the £136 billion lent in 2010.

The CML's chief economist Bob Pannell says that the last few months of 2011 saw stronger mortgage lending and housing transactions even though the prospects for the UK economy over the next few years are "challenging".

He adds: "There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year.

"But continuing eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call."

The CML figures also report that there are currently 11.2 million mortgages in the UK, accounting for loans worth more than £1.2 trillion.