Data from the Council of Mortgage Lenders (CML) has revealed that during the first two months of the year house purchase loans were at their highest levels since 2007.
According to the report, this is due to strong first-time buyer activity which has" consistently matched home mover borrowing over the past six months, a trend not seen in the UK for 20 years".
However, due to the seasonal dip in activity, borrowing was relatively low compared to monthly activity the past twelve months. On a non-seasonally adjusted basis, home buyers borrowed £8.9bn, up 6% on January and 2% on February 2016.
The report also highlighted that homeowner re-mortgage activity fell by 26% by value and 23% by volume compared to January.
Looking on a seasonally adjusted basis, first-time buyer and home mover activity increased by value month-on-month and year-on-year. Buy to let house purchase and re-mortgage activity remained unchanged by volume and by value month-on-month, but decreased compared to February last year 44% by value and 42% by volume.
Paul Smee, Director General of the CML, said: "Seasonal factors traditionally keep the market quieter in winter months, but 2017 began relatively strong on the house purchase side. Borrowers took out more loans to purchase a home in the first two months of 2017 than any year since 2007. This is down to strong first-time buyer activity which has consistently matched home mover borrowing over the past six months, a trend not seen in the UK for 20 years.
