House purchase lending increased in January 2013 by 10.7% compared to January 2012, to reach its highest January total since 2008 according to the Council of Mortgage Lenders.

A total of 38,300 loans were advanced for house purchase in January, down on the 45,900 taken out in December, but an increase from the 34,600 loans advanced in January last year. By value, house purchase lending totalled £5.7bn, compared to £5.2bn in January last year, and £6.9bn in December 2012.

Paul Smee, CML director general, said: "Seasonal factors clearly had an impact on lending figures in January, but it still remains the best start to a year since 2008. Mortgage finance is available and lenders are open for business, allowing more borrowers to take the step into homeownership or move house in line with their needs."

Both first-time buyer and home mover lending contributed to the rise in January compared to the same time last year as the number of loans to first-time buyers increased by 24.2% to 15,900 loans. The number of home movers also increased annually, but only by 2.8% to 22,300 loans.

Conversely the number of remortgages went up by 3% in January 2013 compared to the month before but fell by 23% compared to January last year.

This highlights that remortgage lending remains subdued but it appears to have stabilised at this lower level, having falling sharply throughout 2012.