In total, loans to first-time buyers were worth £2.5bn in October, up on the £2.2bn in September and the £2.1bn advanced at the same time last year.
Although not matching the same rate of growth as first-time buyers, lending to home movers increased in October. A total of 29,400 loans were advanced to home movers, worth £4.8bn, a rise of 13 per cent compared to September and up by 5 per cent on the same period last year.
A total of 49,500 house purchase loans were advanced in October, up from 43,500 loans in September and 44,900 loans in October last year.
This represented a 14 per cent increase compared to last month and a 10 per cent rise on October last year.
By value, house purchase loans totalled £7.3bn in October, up by 11 per cent on September and the same period last year.
Following weakness in remortgage activity for most of the year, remortgage lending increased for the second consecutive month in October.
Remortgage lending totaled £3.5bn in October, up from £3.2bn in September but remains low compared to historical levels and was 10.3% lower than October last year, when lending was at £3.9bn.
CML director general Paul Smee says that the more positive figures in October, after a slow September, suggest that the underlying trend in house purchase lending of modest year-on-year growth will continue.
But the usual seasonal factors may act as a counter to lending levels in the coming months.
He says: “An up-tick in remortgage lending may be an early sign of a small positive impact of the Funding for Lending scheme, but it’s still too soon to evaluate the effects of the scheme.
“If the incremental improvements in house purchase lending that we are currently seeing persist as we expect them to, then next year should feel a more stable and positive year in the housing and mortgage markets.”