Mortgage lending has hit record levels and borrowing on credit cards is growing more strongly than expected, according to the Bank of England.

The UK consumer can be relied on to keep spending and borrowing over the coming months

Geoffrey Dicks Royal Bank of Scotland

Home loans grew by �6.9bn ($10.7bn) - or 1.1% - in July. That is the highest level since the Bank started keeping records in 1993.

At the same time consumer credit grew by �1.8bn after dipping to �1.3bn in June.

Economists attributed June's lull to the World Cup and the Jubilee holiday, and said the latest figures showed resilient confidence.

Carry on spending

The Bank of England's figures back up a report from the Council of Mortgage lenders earlier this month, which found that borrowing by home buyers was up to record levels.

Some analysts have predicted that Britons will keep up their spending habits despite the uncertain economic climate.

Geoffrey Dicks at the Royal Bank of Scotland said: "The UK consumer can be relied on to keep spending and borrowing over the coming months."

However, other economists are more cautious and point to slowing retail figures as a sign that there are mixed signals about consumer confidence.

The latest report from GFK, a market research survey which indicates the public's mood, showed that during August people felt the same degree of confidence as they did in July.

But that was the survey's lowest confidence level this year.