The bank completed £10.2bn mortgage lending in the first six months of 2014, a 33% rise on the same period last year.
This resulted in a 2% increase in net mortgage lending to take its total mortgage balances to £125bn.
Barclays attributed the mortgage figures to increased confidence in the housing market and a bigger appetite for lending above 85% loan-to-value.
Rising house prices also caused the volume of loans above 100% LTV to drop significantly. Barclays now holds £910m of loans worth more than the property’s value, a 43% reduction on last year.
Interest-only mortgages comprise £52.5bn of the total £125bn, £43bn are owner-occupied with the remaining £9bn buy-to-let.
Overall, Barclays reported a 7% fall in underlying profits for H1 after a drop in investment bank revenue, while it also reported another huge bill to compensate Payment Protection Insurance (PPI) customers.
The bank said adjusted profits in the six months to the end of June were £3.3bn, down from £3.6bn over the same period last year.
Costs were lower but revenues also fell 7%, mainly because of an 18% drop from the investment bank. Barclays and its peers have all been hit by a decline in fixed income trading which is still feeding through to revenues.
The adjusted profit figures did not include £900m that the bank said it had set aside for further PPI mis-selling claims still to be settled.
