Mortgage volumes increased 29% in the year to August, according to the latest figures from the Council of Mortgage Lenders.
However, borrowing was down on July, both in terms of number (-5%) and value (-3%).
Meanwhile, the value of the 52,700 loans increased 22% to £7.2bn compared with last August, which resulted in house purchase activity accounting for its largest share of total mortgage activity since 2002.
Remortgage activity declined during the month, with the number of remortgage loans down 22% to 32,000, and down in value by 21% to £3.7bn. This is a 57% decline in the number taken out in August 2008, with the value down 63%.
There were 19,200 loans to first-time buyers and 33,400 loans to home movers.
Overall, the £12.3bn worth of gross mortgage lending, which encapsulates all mortgage lending activity including house purchase, remortgage, and buy-to-let lending - declined 36% from August 2008.
