The estimated gross lending figure was also up from £21.4bn in September.
This figure was the third-highest since summer 2008 – with only August 2017 and the pre-stamp duty surcharge month of March 2016 higher.
Overall, lending was up approximately 4% at £212bn between January and October 2017 compared to the same period in 2016.
UK Finance said that strength in remortgage activity among homeowners and stronger first-time buyer numbers were likely to have been the drivers of the mortgage lending increase.
Around two-thirds of borrowing was conducted by the main high street lenders.
However, it noted that credit card borrowing was continuing to grow, albeit at a slightly slower rate.
Ongoing trend
UK Finance managing director of commercial and personal finance Eric Leenders said the data reflected a continuing trend seen throughout 2017, “ongoing activity in the mortgage market and a shift towards more flexible and affordable personal credit options”.
“Increasing numbers of first-time buyers, low interest rates and a competitive marketplace have helped build up mortgage activity through the year, with gross lending higher than at the same point in 2016,” he said.
“Credit card spending has continued to rise as more financial transactions are now carried out using cards, mirroring the declining use of loans and personal overdrafts.
“But there are signs of caution from the business community which could indicate that many firms are choosing to build up capital rather than borrowing to invest,” he added.
