Mortgage lending rose to £19.1bn in July to reach the highest monthly total since August 2008.
The Council of Mortgage Lenders (CML) said the figure was 7% up from June, and 15% higher than July last year.
Caroline Offord, a CML analyst, said that mortgage lending remained robust, despite regulatory changes earlier this year to toughen lending criteria.
There was a 25% rise in property transactions in the first half of 2014, the CML said.
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