The latest Mortgage Monitor from e.surv found that there were 66,253 residential mortgages approved during the final month of 2019 (seasonally adjusted).
This level of activity represents a jump of 1.9% from November’s total and an increase of 2.7% when compared to the same month last year.
Some analysis has attributed this spike in activity to the clear general election result, which put an end to months of speculation and uncertainty.
First-time buyers have been major beneficiaries of low rates in recent months, but existing homeowners have also taken advantage of the increased competition between mortgage lenders.
Interest rates in the remortgage market have also fallen and this has tempted many borrowers to switch to a cheaper deal.
Reflecting this shift, the proportion of mortgages approved to first-time buyers and others with small deposits fell from 27.7% to 25.5% during the month.
This was because mid-market borrowers increased their share of the market substantially during the last month of the year.
Richard Sexton (pictured), director at e.surv, said: “There have been ups and downs over the course of the year but 2019 ended on a positive note for the UK mortgage market.
“December’s decisive election result does seem to have put an end to the atmosphere of uncertainty which has dominated the property market this year.
“With more certainty on the future, it appears that many new buyers and existing homeowners have chosen to enter the market,leading to a spike in approvals in December.”