The number of mortgage approvals hit 74,581 - higher than December's figure of 70,837 and the average of 70,221 over the previous six months.
The number of remortgage approvals rose from 41,708 in December to 42,228.
Net mortgage lending also rose, up from £3.2 billion in December to £3.7 billion in January.
Steve Griffiths, Head of Sales and Distribution at Kensington, commented:
“These figures show a strong start to the year for lending, as well as a move towards a ‘new normal’ for this sector. However, whilst it is good to see more people securing the mortgages they need, we need to make sure that this growth is not just limited to individuals that tick the boxes of high-street lenders’ standard mortgage applications."
Stephen Smith, Director, Legal & General Housing Partnerships, added:
“It is clear to see that demand for home ownership is still rising in what looks to be a strong start to 2016. Remortgaging has also seen a relative increase for the second month in a row, with more homeowners taking advantage of the competitive deals currently on offer. We expect to see these figures continue to climb as many potential second home owners and landlords hurry to complete before the Stamp Duty changes are implemented in April."
Martin Stewart, managing director of London Money, said:
"The beginning of 2016 has been far busier than usual in the mortgage market, but between now and June activity is likely to slow as the possibility of Brexit makes people more cautious.
"Growing concerns around the UK economy will only temper demand further.
"While buy-to-let may drive activity for another month or so, the smart money knows that it's a dead man walking. The worry is that many amateur landlords still haven't quite understood the full impact of reduced mortgage interest tax relief. It seems many will learn the hard way.
"The remortgage market is also active at present although this is more because people are after the best rates than concerns about rate rises.
“Although remortgage levels are up slightly, there is an increasingly blasé approach to interest rate rises that could come back to bite many people."
