Total mortgage lending rose by £1bn in September to reach its highest level since October 2008, and the number of mortgages approved in last month soared to 66,735, a 14.1% increase on the previous six-month average of 58,473.

This is below long-term average levels of 84,633 a month since 1993, but continues an upward trend which started in February this year, demonstrating that the housing market was already gaining strength before the first phase of Help to Buy launched in April.

Figures suggest mutual lenders are helping drive the market with gross lending from building societies up 50% to £3.7bn compared to £2.5bn in September 2012.

Lloyds and Santander have also substantially increased lending volumes this year.

Brian Murphy, head of lending at Mortgage Advice Bureau said:

“The latest Bank of England figures provide more good news for consumers as mortgage approvals surged to 66,735 in September – a rise of 14.1% compared to the previous six month average. With high street mortgage lending stepping up a notch even before the arrival of Help to Buy 2, it’s clear that mortgage finance is becoming increasingly accessible and there is now every reason to think about jumping on the property ladder.

“Mortgage rates are at a historic low, with two-, three- and five-year fixes all below 4% for the first time since the recession hit. Combined with a rapidly expanding selection of products – 10,745 options were available during September – we’re left with the perfect conditions to boost consumer confidence. As a result, we’ve already seen more mortgage applications this year to date than in the whole of 2012.

“It’s clear that the market is continuing to grow, with average mortgage lending swelling by £1 billion in September compared to an average monthly increase of £0.8 billion in the past six months. With the outlook for the end of 2013 and beyond increasingly positive, consumers who have their deposit ready should act now to lock-in to rock-bottom rates before they inevitably rise.”