The number of mortgage approvals in November was 25% higher than a year ago, with remortgaging up 31% and house purchase up 20%.
Richard Woolhouse, Chief Economist at the BBA, said:
“These statistics show the continued strength of the mortgage market, with monthly new lending higher than at any time over the past seven years.
“Net lending to companies is now expanding, particularly in the wholesale and retail sectors, as businesses take advantage of record low interest rates.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, commented:
"The mortgage market shows no sign of slowing down. It’s been a busy year for many brokers as borrowers take advantage of exceptionally low mortgage rates and seek guidance through the more complicated application process created by the Mortgage Market Review.
"Remortgaging numbers in particular are rising, as borrowers wonder whether 2016 will finally bring that first interest rate rise for several years. While we are not convinced it will, those who would struggle to pay their mortgage if rates rise should consider a fixed rate. There are still some excellent deals to tempt borrowers although we may have seen the back of the very cheapest products.
"While borrowers exude confidence, incomes are rising, and lenders are keen to lend in order to meet their year-end targets, this is not a debt-fuelled boom. Mortgage approvals are improving but far from racing away while growth is more moderate and therefore more sustainable than in the past. For many borrowers, tougher affordability criteria is still a barrier to getting a mortgage or remortgaging."
Jeremy Leaf, former RICS chairman and north London estate agent, added:
"November saw another strong month for the industry, while December has continued to be busy, despite the impending Christmas break. There is a sense that buyers are getting themselves into position for next year, with both buy-to-let investors and first-time buyers keen to strike in the new year. Indeed, Boxing Day tends to be one of our busiest days of the year: people have done enough sitting around watching rubbish television and are keen to start their property search on the internet.
"2016 is likely to be a front-loaded year - lots of activity in the spring ahead of the higher stamp duty in April - and then a more measured period which we expect to be quieter and during which prices could potentially fall."
