Gross mortgage lending rose in January, taking it above the six-month average.

That is according to the latest figures from the British Banker''s Association (BBA), which revealed that lending hit £18 billion in the month.

That is up on the £15.5 billion figure recorded in December and the £17.8 billion average.

David Dooks, director of statistics at the BBA, said that string remortgaging activity was one reason behind the rise in lending.

"Higher gross mortgage lending in January largely reflected very strong remortgaging activity, as borrowers sought out the best deals available," he explained.

"Although house prices and new loans for house purchase, appear to be subdued as the housing market slows, the strength of remortgaging would suggest competition for mortgage business and switching remains high," added Mr Dooks.

December''s cut to the base rate of interest was also thought to be behind the rise in lending, with February''s cut expected to lead to further increases in the coming months.