In October the number of loans for house purchase in the UK reached its highest level since December 2007, according to the Council of Mortgage Lenders.
There were 55,000 loans in October 2009, which has risen 140 per cent since January when only 23,000 loans were advanced.
However, loans for remortgaging have remained static for two months, at 33,000, which is the second lowest level of remortgaging since data recording began in 2002.
The number of fixed mortgages has decreased by 14 per cent since July, and now stands at 66 per cent. Tracker mortgages are on the increase, with 21 per cent of all new loans being trackers – compared to July's 12 per cent.
Commenting on the data, CML director general, Michael Coogan, said: "We are still in a two-speed mortgage market. It appears that low interest rates for those with substantial deposits, coupled with this year's sustained increases in house prices, are encouraging more people to buy or move home.
"But the same low interest rates that are driving house purchase activity provide little incentive for borrowers to refinance their loans. This, coupled with ongoing tightness in lending criteria, continues to hold back the remortgage market."