Mortgage borrowing reached £13.6 billion in January, according to the British Bankers Association (BBA).
Data shows that the amount borrowed in January is 38% higher than a year ago and is the highest since mid-2008.
Mortgage approvals were also up 33% on a year ago, with remortgaging up 42% and house purchases up 27%.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “For those who meet lenders’ criteria and are fortunate enough to afford a deposit, there have been few times like the present to borrow.
“Not only are rates extremely low, but consumers can also choose from a huge range of different mortgage products tailored to their individual needs.”