According to figures realsed by the Council of Mortgage Lenders (CML), gross mortgage lending to first-time buyers was £3.7bn.

Banks, building societies and other lenders made 26,800 loans to first-time buyers – the highest monthly total since November 2007. The typical first-time buyer loan size was the highest ever recorded, at £119,500.

In parallel, the typical income of first-time buyers also rose to the all-time high of £36,460. In total, lenders advanced £17.6bn in October.

CML director general Paul Smee said:

“After years of a relatively flat mortgage market, 2013 has shown signs of lending turning a corner and looks set to finish the year strongly.

“Increased financial optimism among the public as the economy recovers seems to be driving this upward trend and it is welcome to see that first-time buyers continue lending momentum as more look to own their first home.”

First-time buyers spent 19.3% of their gross income on capital and interest payments in October, compared to 19.2% in September.

The value of home mover loans jumped 23% on last year, to reach £5.9bn. Homeowner remortgage lending climbed by 14% over the same period.

However, while other sectors saw an increase in lending between September and October, homeowner remortgage lending declined.