One in five borrowers took out interest-only mortgages in the last year, Financial Services Authority data reveals.
The number taking out interest-only deals increased from 15% in 2008/09 to 19%.
A total of 72% of customers chose capital and interest as their mortgage repayment method up from 63% last year.
Remortgages accounted for 38% of all mortgages, dropping from 60% in the 2008/9.
While 36% were home movers, up from 23% and 22% were first-time buyers , up from 13%.
There was a total of 0.93m mortgage sales worth £123bn down from 1.2m sales worth £171bn in 2008/09.
Fixed rate mortgages accounted for 64% compared to 59% last year with 78% of first-time buyers opting for a fixed deal.
Three-quarters of mortgage lending was to borrowers requiring LTVs of less than 75%, compared to 69% last year.
For first-time buyers the figure is 48%, up from 36% in 2008/9.