BBA: Gross mortgage borrowing up 32pc
Approvals for house purchases were up 33% year-on-year while remortgage approvals were up 18%.
David Dooks, BBA statistics director, said: “The housing market continues to pick up. October’s new mortgage borrowing was 32% higher than in October last year and approvals for house purchase were 33% higher.
“Improving consumer confidence is also leading to the banks seeing higher demand for personal loans.”
David Brown, commercial director of LSL Property Services, agreed that the market was continuing to improve.
He said: “The mortgage market has shown a burst of life, having been dredged from the bottom of a sea of despair.
“In a relatively short space of time lenders have come a very long way. The next challenge will be to sustain the recovery.”
Brown warned that there is some way to go before the market is out of the woods.
He said: “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.”