Gross mortgage lending by the major UK banks reached its highest monthly level of the year in December, industry figures show.

Lending of £9bn was 12% higher than in December 2010, the British Bankers' Association (BBA) said.

However, householders continued to take a cautious approach to other forms of borrowing.

Repayments on unsecured lending matched the amount of new borrowing on loans, overdrafts and credit cards.

"The household sector generally is focusing on debt repayment amid inflated household expenses and a continuing air of uncertainty, so we see a reluctance to let net borrowing rise, with people preferring to use their bank account cash for expenditure," said BBA statistics director David Dooks.

There was a slight rise in the credit card sector of unsecured lending. The BBA said that this reflected the increase in year-on-year spending in the shops at Christmas. Even so, repayments still outstripped new borrowing on these cards.