The number of mortgages approved for house purchases hit an 18-month high in September, but the figures masked a great decline in remortgages, according to Bank of England statistics.

Figures from the Bank of England show 56,215 mortgage approvals were made last month, above the August figure of 52,970 and above the previous six-month average.

Whereas remortgaging continued to fall, with just 25,528 remortgages being approved, below the August figure of 28,348 and below the previous six-month average.

Council of Mortgage Lenders economist Paul Samter said: “There is clear evidence of a significant pick up in housing market lending activity from a year ago, even though it remains low on any historic comparison.

“On the other side of the gross lending equation, remortgaging volumes continue to weaken. Borrowers seem to be opting to stay on low reversion rates, with official interest rates not expected to rise for some time yet.

“Overall, the numbers support our view that housing market activity continues to strengthen. But we are cautious about how far we can expect it to continue increasing, with funding still a challenge and the economic outlook still subdued,” he said.