The number of mortgages to homebuyers in October reached 55,300, up by 9% from
September and 43% higher than October 2008. They have risen  by nearly 100% from a trough in  January 2009 when only 23,000 loans were advanced.

First-time buyer numbers held steady during the month at 19,700, a third more than a year earlier.

Fixed-rate mortgages are continuing their downward trend from 80% of all mortgages in July to 66% in October. Tracker mortgages rose with 21% of loans being trackers, compared to July’s low of 12%.

However, remortgaging is down 52% on October last year and stands at 33,000 loans. This  is the second lowest level since CML records began in 2002.

Michael Coogan, director general of the CML, said low interest rates for those with substantial deposits and sustained house price increases had encouraged more people to buy and move home.

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However, he added: “The remortgage market is still being  held back by low interest rates
and a tightness in lending criteria which provides very little incentive
for borrowers to refinance.”

David Sheppard, managing director of Perception Finance,  said it believed the remortgage  market would improve in 2010 as interest rates rose while the purchase market would remain
static next year as consumer demand may tail off slightly.