Gross mortgage lending rose by 5.6% in October compared to the same month last year, to reach £25.5bn, according to UK Finance.

The trade body found that although lending was up by value, the actual number of mortgages approved by the main high street banks in October fell 4.1% over the last 12 months to October, pushed down by a 13.5% annual fall in remortgages. Approvals for house purchase were 3.6% up year on year.

Eric Leenders, managing director of personal finance at UK Finance, said: “Overall mortgage lending grew in October, despite an uncertain economic environment, while house purchase mortgage approvals by the main high street banks were also up on the previous year.

“However remortgaging activity has softened, following a period of strong growth driven by fixed rate loans reaching maturity and anticipation of August’s base rate rise.

Ross Boyd, founder of mortgage platform, Dashly.com, added: “A slight rise in approvals for home purchase will calm the nerves of those fretting about stubbornly low transaction levels, which can wind up leading a housing market down a blind alley. That’s where the Brexit factor still looms large.”