Lending in 2016 was higher than in 2015 with mortgage approvals up by 13% according to the data.
Building societies provided a third of approved mortgages in the final quarter of 2016, collectively approving 109,543 new mortgage loans which is up 7% on the same period in 2015.
Lending in 2016 was higher than in 2015 with mortgage approvals up by 13% according to the data.
Paul Broadhead, head of mortgage policy at the BSA, said: ““Despite the uncertainties facing the UK economy in the wake of the vote to leave the European Union, consumer confidence remained remarkably strong in the final three months of 2016.
“This was reflected in the demand for mortgages which was up on 2015. Momentum did, however slow in the second half of the year.
“This was not simply due to ‘Referendum’ caution, the Stamp Duty change in April also had a noticeable effect.
“So far this year, employment levels have remained stable and low interest rates are clearly an advantage for home buyers however the uncertain economic outlook for 2017 may mean home buyers exercise more caution.”
According to the BSA, savings balances also increased by £18.5bn however consumers saved less in Q4 2016 than they did in 2015.
Broadhead added: “Even with many savings rates across the sector at a multiple of the Bank Base Rate, absolute returns for savers remained low in 2016.
“In 2017 households will have to contend with higher consumer prices and relatively low growth in wages.
“This could force some people to use their savings to support current levels of spending putting pressure on their ability to save and reducing retail savings inflows.”
