Gross mortgage borrowing of £12.2bn in the month was 4% lower than in October 2015.

Net mortgage borrowing is 2.5% higher than a year ago.

Consumer credit is now showing annual growth of over 7% reflecting strong retail sales growth in October supported in the case of personal loans by favourable interest rates.

Dr Rebecca Harding, BBA Chief Economist, said:

"Consumer credit is now growing at its fastest rate since November 2006, reflecting strong retail sales growth. Consumer confidence remains robust as borrowers take advantage of record low interest rates.

"Mortgage approvals ticked up a little October. There has only been a relatively modest increase in activity since the Bank of England cut rates in August.