Data released today shows that gross mortgage borrowing in October 2015 reached a total of £12.9 billion, 26% higher than the same time a year ago and the highest amount of borrowing since August 2008.

The total number of mortgage approvals in October was 27% higher than a year ago, with remortgaging up 34% and house purchases rising by 21%.

However, data shows that bank lending to companies is polarised. There are signs of growth in lending to the wholesale, retail and manufacturing sectors, whilst lending to the construction and real estate sectors is continuing to contract. Net capital market finance has risen by £18.2 billion so far in 2015, with larger companies opting to use that as an alternative to loans and overdrafts.

Richard Woolhouse, chief economist at the BBA, said, “These statistics show that housing market activity remained strong in October, with gross mortgage borrowing 26% higher than a year ago and at its highest level for seven years.

“Consumers remain confident and their incomes are continuing to grow. Mortgage rates are still at multi-year lows and people are snapping up the very competitive deals being offered by banks."