But month-on-month the market showed signs of cooling.

In the first-time buyer market the number of loans in Q3 grew 3% on the previous quarter. The story was the same in the home-mover market where the number of loans in Q3 was up by 12% on the previous three months. 

Between Q2 and Q3, remortgage loans nudged up by 2% in number while the buy-to-let market recorded a 12% jump for the same period.

On a monthly basis, however, September saw the number of first-time buyers dip for the second month in a row while loans made to home-owners had also dropped in number.  

“Over the past few weeks we’ve seen further evidence that that the Mortgage Market Review has successfully applied the brakes to the housing market,” said Alan Cleary, managing director of Precise Mortgages. “The figures released today from the CML reinforce these signs with gross mortgage lending down 10% from August.”

Brian Murphy, head of lending at Mortgage Advice Bureau, was more bullish. He said: “Despite significant regulatory change, the UK mortgage market continues to go from strength to strength, with Q3 2014 experiencing the highest quarterly level of lending since the recession.

“Rather than being restricted by the Mortgage Market Review, many consumers are clearly meeting affordability requirements and successfully accessing mortgage finance, with first-time buyer loan numbers in particular improving since Q3 2013.” 

In what has been a year of transition for the mortgage market, Paul Smee, director general of the CML said some of the heat coming out of the market was a positive sign.

He said: “The lending market is healthier than it was a year ago, and set to remain so. Remortgaging has returned as a driver of lending volume in the buy-to-let sector. But any fears of over-heating in the housing market are now dissipating as house purchase lending activity seems to be softening.”

Looking to the months ahead, Cleary was keen that any further softening would not have an impact on borrowers who already found it difficult to secure a mortgage.

“We know first-hand that freelancers and self-employed people are groups in particular that often struggle to gain support from mainstream lenders,” he said.

“Any further decline in the market as a whole could waver their interest further. That’s why we need to be certain that as an industry we are doing everything we can to support credit-worthy individuals on the property ladder.”