The Council of Mortgage Lenders (CML) says that over £23 billion was lent by mortgage companies in January 2006.

This is the highest figure ever lent in January, although it is less than the £26.9 billion that was lent to borrowers during December 2005.

The CML expects lending to slow down during the winter months as fewer people choose to move home at this time of year. It says that such a good performance for January shows that consumer confidence is remaining high in the housing market.

Commenting on today's data, Michael Coogan CML Director General said:

"Mortgage lending in all categories has been strong in recent months. This reflects the fact that consumers are feeling more certain about the future of the housing market and confident that house prices are unlikely to fall."

"The interest rate outlook for the near future is for stable rates. Our recent figures show that the majority of new borrowers are taking out fixed-rate loans to provide payment certainty at affordable cost. The mortgage market looks set for continued steady growth against a backdrop of pretty positive economic conditions."