THE number of mortgages dished out is bouncing back, it emerged yesterday - boosting hopes Britain is out of recession.

Approvals for home loans in November were almost DOUBLE the record low of November 2008. They climbed by almost 3,000 to 60,518 from 57,718 in October - to hit the highest level since March 2008. The Bank of England data backs the Government's forecast that Britain's economy returned to growth at the end of last year after an 18-month recession. Net mortgage lending - which strips out redemptions and repayments - rose by a surprisingly large £1.459billion in November, its highest since February.

And while consumers settled unsecured debt for a fifth consecutive month, the £376million repaid was dwarfed by October's figure of £591million. Meanwhile, the Nationwide Building Society said house prices rose by almost six per cent in 2009. Amit Kara, economist at financial services firm UBS, said: "The figures have surprised positively. They are consistent with our view on UK housing as well as for overall economic growth."

The Bank of England's key measure of money flow showed there was more swilling around in the economy - a 0.9 per cent rise, or £14.3billion, in November. Improved manufacturing figures added to recovery hopes. The stock market caught the mood and the FTSE 100 pushed to a 16-month high.

source: thesun.co.uk