The latest CML data has shown that lending during the third quarter of 2013 was at its highest quarterly level since 2007.
Gross UK mortgage lending was £16.2bn in September, despite a fall of 14% in monthly lending from August to September this was a 21% year-on-year increase.
Gross lending for the third quarter of 2013 was £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year.
First-time buyers took out 23,600 loans in September, a 34% increase from September 2012.
Third quarter results saw first-time buyer lending up 16% on the second quarter of 2013 and 34% up on Q3 2012.
Remortgage lending saw a 20% increase in September, and was up 11% in the third quarter compared to the second quarter of 2013.
Total buy-to-let loans advanced increased slightly to 14,600 loans in September, up 0.7% compared to August.
Buy-to-let overall in quarter three of 2013 grew compared to the second quarter and the same period last year.
Paul Smee, director general, CML, said: “The typical seasonal fall in lending in September was expected but we are seeing appreciable year-on-year and quarterly lending rises that suggests the market is continuing its recovery.
"First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the new year."
