Mortgage approvals rose 21.2% year on year in December, from 102,910 to 124,803, according to Bank of England (BoE) figures.
The total value of approvals rose 31.5%, from £15.2bn in December 2014 to £20bn last December.
House purchase approvals rose 18% year on year in December to 70,837 from 60,275. The value of these approvals was £12.3bn in December 2015, up 26 per cent year-on-year.
Re-mortgage approvals increased 27 per cent in the final month of the year, from 32,847 in December 2014 to 41,708. The value of re-mortgages was £7.1bn last December, up from £5.1bn in the same period of 2014.
The number of approvals for other purposes was 12,258 in the final month of 2015, up 26% from 9,723 in December 2015.