Stonebridge’s November Mortgage Market Briefing found that the typical loan size is now £207,929.

The average mortgage rate dropped by 39bps from October, to 4.35%, while mortgage applications were up 11.6% in the year to November.

Stonebridge chief executive Rob Clifford said: “The fact that mortgage applications are up 11.6% year-on-year in November, despite a range of economic headwinds, demonstrates that the mortgage market continues to display notable resilience.

“Much of this growth has been fuelled by falling mortgage rates, which are 39bps lower than they were a year ago, on average, making borrowing more affordable and attractive to prospective buyers but also those wondering whether to refinance or not.

“Markets have already priced in another two-to-three cuts over the coming 12 months, which should theoretically limit the scope for mortgage rates to fall much further. However, lenders are competing hard at present, which is likely to apply additional downward pressure on rates and provide extra momentum for the market.”