There were £28 million worth of secured loans completed in November, a 12% increase year-on-year, according to the Finance & Leasing Association (FLA).

The credit body said that this was mainly because the average sum borrowed grew the number of people taking out second-charge mortgages fell.

Meanwhile, new consumer credit fell by 2% in November as shoppers remained cautious in the run-up to Christmas, the FLA said.

Spending through store cards, store instalment credit, personal loans and credit cards all fell, leading to an overall drop in lending by FLA members in November compared with the same month a year before.

Both new and used car finance rose in November 2011 compared with November 2010.

Fiona Hoyle, the FLA’s head of consumer finance, said: “Once again