Speaking at the British Mortgage and Protection Senate, Stephen Noakes, home and lifestyle director, retail consumer products at Lloyds Banking Group said that gross mortgage lending, which was £143bn last year, could hit £170bn this year and £190bn in 2014.

Noakes said that the growth would largely driven by first-time buyers, increased affordability and buy-to-let landlords.

However, Noakes warned the market to be prepared for a lending slowdown when new regulation comes into effect next April.

Huge investment in IT and the recruitment and training of suitably qualified advisers are both big factors for lenders to contend with, he said. Income verification and affordability checks in 100% of cases would also play a part, he added.

“Many lenders, ourselves included, have already adopted full stress testing in affordability but some may still need to do more,” he added.

So far, Lloyds, which includes the UK’s largest mortgage lender Halifax, is the only lender officially signed up to the mortgage guarantee part of Help to Buy due to launch on the 1 January next year.

Responding to a question from the floor, Noakes said although the scheme is due to finish in December 2016, ultimately the Financial Policy Committee will decide whether or not to extend it.

“The key question will be whether the market will be able to sustain 95% loan to value lending on its own and I’m sure there will be a number of discussions with lenders at that time.”