Demand for credit strengthened in November, underpinned by continued strong growth in mortgage lending, the latest Central Bank figures show.

The monthly lending data show that private sector credit growth rose to 13.9 per cent in the year to the end of November, up from 13.5 per cent in the 12 months ended October.

Growth in residential mortgage lending again proved the main driver of the headline credit growth figures. Annual growth in residential mortgages rose to 21.8 per cent in November from 21.2 per cent in October, the fastest rate recorded since March 2001.

If residential mortgages are excluded, lending growth was far more modest, rising to 8.1 per cent from 7.9 per cent in October.

Residential mortgage lending rose by €796 million in the period, similar to the increase in October, while other mortgages expanded by more than €200 million.

Overdrafts and term or revolving loans grew by €150 million and €350 million respectively, although this was offset by a fall of €460 million in loans of up to and including one year. The figures also showed that balances in special saving incentive accounts (SSIAs) increased by €126 million to €1.4 billion in November.

Despite fears that the Minister for Finance, Mr McCreevy, might change or scrap the scheme in his December Budget, the Central Bank said top-ups during November were modest.

The €126 million increase was only €2 million to €3 million more than the typical monthly increase since the scheme closed in April, it said.