Banks’ gross mortgage lending totalled £8.3bn in January 2012 and the average house purchase mortgage was £144,400, slightly higher than a year earlier.
The number of house purchase applications approved in January 2012 was the highest seen for two years and 34% higher than in January 2011.
The BBA said this reflected first-time buyers taking advantage of the stamp duty exemption before it ends in March.
Capital repayment by householders remained at a high level resulting in a net mortgage lending increase of only £0.7bn in January.
David Dooks, statistics director at the BBA, said: “January saw the high street banks approve more mortgages for house purchase than of late, despite low household confidence, as some people try to complete transactions before the stamp duty holiday ends in March.”
