U.K. banks reported recently that they increased lending to home buyers in November but consumers continued to reduce their credit card and unsecured debt.

This means that they have been putting less into savings accounts and trying to clear off the debt as soon as possible.

Loans for residential property purchases rose to 6.6 billion pounds in November, up from 6.1 billion pounds in October, the British Bankers Association said.This figure is more than double the amount approved one year ago as the credit crunch hit hard.

The BBA also said that remortgaging and equity withdrawal lending remained at low levels, however, total mortgage lending reduced by 12 percent compared to a year earlier.

5.9 billion pounds of credit card charges, or 100 million pounds more than they borrowed, have been paid by the consumers.

Net lending for personal loans and overdrafts declined by 500 million pounds, the BBA said. Savings deposits increased by 1.4 billion pounds, down from 3 billion pounds in October.

"Household priorities are showing up in the November figures," said David Dooks, the BBA's director of statistics."Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances," he added.