Seasonal factors are being attributed to a 5% boost in gross mortgage lending in October.
According to the Council of Mortgage Lenders (CML), lending was an estimated £13.5bn last month, a 5% rise from the £12.9bn in September but down 27% on the £18.5bn recorded in October last year.
The CML says the move is "typical seasonal activity" between September and October, pointing out the average monthly rise over the last decade has been 5%.
However, it says the annual comparison should start to improve in the coming months as underlying lending volumes dropped sharply in the latter part of 2008 and early 2009.
CML economist Paul Samter says: "There has been a significant change in the type of lending taking place from the start of the year.
"House purchase activity has picked up significantly. In contrast, remortgaging has dropped to decade-low levels as many borrowers have little incentive to refinance when they move onto low reversion rates, and others find themselves unable to do so due to equity constraints.
"The coming months are likely to be dominated by seasonal factors rather than underlying change."
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