In the three months to June, lenders advanced 33,200 loans worth £3.9bn up from 32,300 mortgages worth £3.7bn in the first quarter.
Year-on-year the buy-to-let market continued to grow strongly with the volume of loans up 14% from 29,100 and the amount advanced up 18% from £3.3bn.
Growth in buy-to-let lending was evenly split between loans for house purchase and remortgaging with both showing a 3% increase by volume over the first quarter.
Year-on-year lending for house purchase has grown 17% by volume and 21% by value and is stronger than remortgaging which was up 10% by volume and 15% by value. However buy-to-let lending is continuing to recover from a low point in 2009 and lending volumes remain around one-third of their peak in 2007.
The stock of buy-to-let mortgages continues to grow. At the end of the second quarter the number of outstanding loans totalled 1,416,000, worth £160.7bn up from 1,405,000, worth £159.4bn at the end of the first quarter and from 1,338,000, worth £153bn a year earlier.
The average maximum loan to value available on buy-to-let mortgages remained at 75% with average minimum rental cover at 125%. Both have been broadly unchanged for the last three years.
The data showed a slight improvement in the performance of buy-to-let loans with the proportion of borrowers more than three months in arrears declining from 1.69% at the end of the first quarter to 1.56% at the end of June.
In the owner-occupied sector the proportion was unchanged at 2.05%.
The proportion of buy-to-let properties taken into possession was unchanged at 0.12% while in the owner-occupied sector the data showed a small decline (from 0.08% to 0.07%).
The CML said it is not surprising to see a lower rate in owner-occupied households where there is a concerted effort to extend forbearance wherever possible.
CML director general Paul Smee said: "Buy-to-let is continuing to show signs of recovery and growing broadly in line with expectations. The rental sector has grown strongly over the last decade or so and buy-to-let continues to help deliver a wider choice for tenants."
