Remortgaging and first-time buyers bumped up October mortgage lending to £23.1bn, up 14 per cent year-on-year, according to UK Finance.
However, the trade body’s latest gross lending figures show October lending was down 7.7 per cent from £21.3bn in September.
High street banks carried out two-thirds, or £15.3bn, of October mortgage lending.
UK Finance says there has been little recovery in property transactions over the last four years and overall 2017 activity levels are set to be similar to 2014-16.
A UK Finance statement says: “The difference between then and now is that the mix
of activity favours first-time buyers more, with cash and buy-to-let landlords making up a small portion of overall activity.”
UK Finance managing director of commercial and personal finance Eric Leenders says: “Increasing numbers of first-time buyers, low interest rates and a competitive marketplace have helped build up mortgage activity through the year, with gross lending standing at nine per cent higher than at the same point in 2016.”
The UK Finance figures are estimates based on non-seasonally adjusted data from around 80 per cent of the mortgage market, scaled up.