The mortgage market has enjoyed its strongest performance in five years with £17.6 billion of gross lending in October, up 9% on September and 37% higher than the same month last year.
This is the highest monthly estimate since October 2008, when mortgages totalled £18.6 billion, according to new figures from the CML.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "We are coming to expect inexorable rises in mortgage lending and October's figures don't disappoint.
"The lending numbers have bumped around the £16 billion mark for the latter part of this year, but this is the first time they have broken through the £17 billion barrier.
"But let’s not get carried away: while this is the highest monthly estimate for gross lending since October 2008, it is still 5% off that figure, so the recovery is still very much underway."
Brian Murphy, head of lending at Mortgage Advice Bureau, said October’s 9% growth is a continuing payoff from an eventful summer, and a strong indication that the market is set for a busy end to the year.
“When you look at the variety and pricing of the mortgages on offer, it’s no wonder more people are recognising that now is an excellent time to move or remortgage.
"Average two and three-year fixed rates continue to set new records while five-year rates remain close to their lowest point in years.
"With more products available last month than at any time since January 2009 – and new offers launching by the day – homebuyers are increasingly spoilt for choice."
David Brown, commercial director of LSL Property Services, said: “Recovery is no longer a whispered word, or a vague hope. Mortgages are flowing, and the property market has been revitalised.
"There’s now a real pervasive feeling in the property world that we’re making real traction, in what only a few short years ago felt like quick sand.
“But the light at the end of the tunnel is a still distant glimmer for many aspiring homeowners. Mortgages are not houses, and there are still not enough homes to go around.
David Copland, director of mortgage services for LSL’s financial services division, predicted a "healthy pipeline" of mortgage completions in the New Year, as more lenders offer 95% LTV mortgages, both inside and outside Help to Buy.
“The only caveat is the amount of housing stock on the market. Many potential movers are holding off selling as there is not enough property on the market to encourage them to buy.”
Stephen Smith, director, housing & external affairs, at Legal & General Network, disputed claims that Help to Buy was causing the market to overheat. "Many responsible and capable borrowers are being priced out of home ownership by the requirement for sky-high deposits, and making mortgage finance available to these responsible individuals is no bad thing."
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