Mutuals and building societies have doubled their net mortgage lending over the last year, figures from the Building Societies Association (BSA) show.
The government should reconsider its Help to Buy housing scheme, according to business secretary Vince Cable, who spoke of a "raging housing boom' in London and South East England.
The mortgage market is experiencing "strong upwards momentum" and gross lending may top £200bn for the first time in seven years in 2015, but there is little evidence of a housing boom developing, according to the Council of Mortgage Lenders (CML).
The mortgage aspect of the Funding for Lending Scheme (FLS) is to be discontinued in light of improved market conditions.
RBS Intermediary Partners is to return to the mortgage market on Monday, the group has announced.
The government is undermining its own Help to Buy scheme by imposing a large tax burden on first-time buyers, the Council of Mortgage Lenders (CML) has argued.
UK house prices are now 5.8% higher than this time a year ago, according to Nationwide, but are still 7% off their 2007 peak.
Mortgage advisers are reporting a rise in Help to Buy enquiries, despite the fact they are unable to places cases yet.
The government's popular Help to Buy mortgage scheme could threaten financial stability if it is mismanaged, a group of MPs has warned.