CML’s research revealed that homeowners borrowed £12.2bn for house purchases in August, a 14% rise month-on-month and an 11% increase year-on-year.

This comprised 66,000 loans, up 9% on August 2015 and 13% on July 2016.

A comparison with August 2015 shows that first-time buyer borrowing increased by 24%, home mover borrowing rose 3%, remortgage activity went up by 41% and landlord borrowing declined by 12%.

The research also found that the typical loan size increased to £136,300 in August from £133,000 in July.

Meanwhile, household income rose from £40,200 in July to £40,900 in August.

Paul Smee, director general of the CML, commented: "House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity. 

“Mortgage rates remain at or close to historic lows, and the re-pricing of mortgages following August’s base rate cut should help to underpin a continuing, strong appetite for home ownership over the coming months. 

“Buy-to-let by contrast continues to operate at lower levels five months after the stamp-duty change on second properties.

“This appears to be a long-term trend, and with lenders potentially tightening affordability checks ahead of the tax changes in April 2017, activity on the buy-to-let house purchase side may well remain at current levels."