Mortgage approvals for homebuyers hit a 13 year high in November, Bank of England figures show. About 105,000 home loans got the go ahead, up from 98,000 in October and marking the highest number since August 2007.
The surge in approvals meant that by November they were nearly at levels recorded in 2019, despite the housing market effectively being shut in March during lockdown.
Homebuyers have been motivated by the stamp duty holiday which ends on March 31st, as well as the desire to move locations.
Mark Harris, boss of mortgage broker SPF Private Clients, said: "We expect mortgage rates to remain competitive into the spring."
The Bank said consumer credit contracted by 6.7 percent annually in November, a new low since records began 1994. Consumer credit includes credit card debt, personal loans and overdrafts.
Household deposits rose by £17.6 billion from National Savings and Investments accounts after rates were reduced.