August figures released by the British Bankers' Association (BBA) show that gross mortgage borrowing in August stands at £12.2 billion – 14% higher than a year ago and the largest increase since 2008.

The number of mortgage approvals in August was 23% higher than a year ago, with remortgaging up 38% – the highest level for four years – and house purchases up by 16%. Figures also show that existing borrowers are looking to secure fixed rates on their mortgages, while renewed competition in the marketplace is producing attractive deals for new buyers.

Richard Woolhouse, Chief Economist at the BBA, said, “People are continuing to put their money into bricks and mortar while interest rates are low and the timing of a likely rate rise remains uncertain. Mortgage borrowing continues to pick up; the August increase is the largest in five years, although borrowing is still some way below pre-crisis levels.”