Gross mortgage lending reached £9.9 billion this October, up 2.1 per cent from September, lending figures from the BBA have found.
The value mortgage approvals was static month on month, at £10.6 billion and up from an average of £9.4 billion over the previous six months.
However, the number of approvals fell from 75,077 in September to 74,743 in October.
BBA statistics director, David Dooks said: “The housing market continues to pick up. October’s new mortgage borrowing was 32 per cent higher than in October last year and approvals for house purchase were 33 per cent higher.
“Improving consumer confidence is also leading to the banks seeing higher demand for personal loans.
Commenting on the figures, David Brown, commercial director of LSL Property Services, said: “The mortgage market has shown a burst of life, having been dredged from the bottom of a sea of despair. In only a relatively short space of time lenders have come a very long way. The next challenge will be to sustain the recovery.
“But we also need to remember there is still some way to go. For first time buyers in particular, prospects are still incredibly tough. Until wages start to feel the full force of economic progress, it will only get trickier, particularly as property prices rise. In the meantime, more loans at higher LTVs and for relatively modest amounts will be the most appetising recipe for thousands more new buyers.
“As we approach the festive period it’s natural to expect some slowdown in activity, but as we start to look ahead to next year, more of the same from lenders would be very welcome. A healthy private rented sector, coupled with some progress on wages, is the most likely way for new buyers to gain some traction and make some headway in getting onto the ladder.”
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