According to the Council of Mortgage Lenders (CML), banks and building societies advanced £49.3bn over the third quarter – 32% more than the same period last year and the most since the third quarter of 2008.

While lending in September remained relatively steady compared to the previous month, it was 41% higher than the same time last year.

CML chief economist Bob Pannell said the figures indicated a strong housing market:

“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the Mortgage Market Review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy.

“For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”

The lending data came as Bank of England figures showed mortgage approvals reached their highest levels in August since February 2008.

There were 62,200 approvals for house purchase, 36,200 for remortgages and 12,900 for other types of mortgages. The report found noted the rates on fixed-rate mortgage products had remained little changed over the third quarter:

“In recent discussions, most major UK lenders reported that the recent increase in swap rates had been largely absorbed and suggested that this partly reflected competition in the mortgage market.”

The total number of residential valuations conducted in September 2013 was 65% higher than the same time last year, according to separate analysis from Connells Survey & Valuation.

Buy-to-let and remortgages saw particularly strong growth. Corporate services director John Bagshaw described the month as a tipping point:”In just twelve months, the situation has shifted unrecognisably with last quarter’s economic growth likely to come in above 1%.

“However, many borrowers have been reliant on remortgaging to fuel a good proportion of their new-found optimism. If not for record low product rates, many families could now be struggling to pay their mortgage while keeping the lights on at the same time.

“The real question now is how long these excellent new deals can last before the Bank of England decides to raise interest rates.”