Gross mortgage lending rose 12% to £20bn for the year to September, according to new figures from The Council of Mortgage Lenders.
This was 2% higher than August’s lending total of £19.7bn.
Gross lending in the third quarter of 2015 was estimated to be £61.4bn. This is 18% higher than the £52.2bn advanced in the second quarter, and an increase of 12% on the third quarter in 2014, when lending totalled £55bn.
This is the fourth month in a row that there has been a sharp improvement in year-on-year lending.
CML economist Mohammad Jamei said: “Mortgage lending is currently enjoying its best spell since 2008. As we expected, the second half of 2015 has seen a pick up in activity in the housing market after a slow start to the year. Low inflation, strong wage growth, falling unemployment and competitive mortgage deals are all helping to support housing demand.
“We expect to see further modest growth towards the end of the year, although affordability pressures are likely to limit gains for home movers and first-time buyers.”
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