The trade body had previously predicted gross lending in 2014 would total £195bn, a forecast which sparked criticism from fellow trade body IMLA at the time for being too conservative.
Now the CML has revised its predictions upwards and expects lending to top the £200bn mark this year.
“Activity was stronger than we had anticipated in the closing months of 2013 and first few months of 2014, and these baseline effects provide much of the explanation as to why we have modestly revised up our forecast for industry gross lending this year,” the trade body said.
Such a figure would represent the first year since 2008 that lending has passed the £200bn barrier.
The CML said it expects lending growth to continue in 2015 but at a slower level as the housing market cools.
This is likely to see the share of first-time buyers drop while the remortgage market should be expected to recover, the trade body added.
Legal & General Mortgage Clubpredicted the same £200bn 2014 total lending figure earlier this year.
