Mortgage borrowing continues to pick up with biggest rise since 2008

The was amount is 14 per cent higher than a year ago and the largest increase since 2008.

Meanwhile, Net borrowing of £2.0 billion was the highest monthly rise since August 2010, the BBA said.

The organisation also revealed that the number of mortgage approvals in August was 23 per cent higher than a year ago, with remortgaging up 38 per cent - at its highest level for four years - and house purchases up 16 per cent.

Existing borrowers are seeking fixed rates to control their mortgage costs, while market competition is also producing attractive deals for new buyers.

Bank lending to companies increased in August but continues to be subdued overall. Capital market finance has grown by £11.5 billion in 2015 so far, with larger companies using it as an alternative to loans and overdrafts.

BBA Chief Economist Richard Woolhouse said: “People are putting their money into bricks and mortar while interest rates are low and the timing of a likely rate rise remains uncertain.

“Mortgage borrowing continues to pick up. The August increase is the largest in five years, although borrowing is still some way below pre-crisis levels.

“Remortgaging numbers also continue to be strong, as shrewd homeowners snap up competitive deals.”