The figure beat August's £3.4 billion and the average monthly increase of £2.6 billion over the previous six months.
The number of mortgage approvals dropped to 68,874 in September from August's high of 71,030, however the figure remains the second highest seen this year and remains above the average of 66,900 over the previous six months.
The number of approvals for remortgaging outperformed the previous month, reaching 41,163 compared to 40,931 in August.
Peter Rollings, CEO of Marsh & Parsons, said:
“September represents the first month-on-month dip in mortgage approvals since May, but borrowing is still head and shoulders above 2014 levels, and has been steadily climbing throughout this year. Remortgaging continues to rise up the ranks too, as an inevitable interest rate in 2016 plays on the minds of homeowners and gives ever stronger impetus to fix deals as the end of the year approaches."
Nicola Georgiou, Managing Director at Freedom Finance, commented:
“Today’s figures, which highlight a sustained growth in lending, especially in the buy-to-let sector, are a clear indication of a boost in consumer confidence across the UK.
"The data confirms that many borrowers are investing their money into property while interest rates remain at historic lows. However, whilst The Monetary Policy Committee has voted unanimously to keep the Base Rate from rising this month, Mark Carney, has hinted that interest rates could finally start to increase by the end of the year."
Matt Andrews, Managing Director, Bluestone Mortgages, added:
“This year’s consistent, sustained growth in lending to both businesses and individuals is a clear indication that the market has begun to change for the better. This is encouraging to see, and proof that we are in a growing economy, with confidence on the part of the consumer and the industry, steadily recovering.
"However, whilst it is good to see lending numbers on the whole increasing, it is important to remember that there is still a significant portion of the UK workforce who struggle to get access to lending due to their complex financial circumstances. As the economy changes and develops, lenders need to innovate, and offer more flexible options to hard working people across the UK who have experienced genuine hiccups and deserve lenders that listen and treat each case with a tailored, individual approach.”
