Net lending by FLS participants in quarter three stood at £5.8bn, up from £1.6bn in the second quarter.
Some 21 participating institutions made FLS drawdowns of £5.5bn, taking total outstanding drawings to £23.1bn.
Last Thursday the BOE and Treasury announced that they were changing the terms of FLS in 2014 to re-focus it on supporting SMEs rather than mortgages.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The Funding for Lending Scheme has been essential to the improving health of the mortgage market, with today’s figures showing the household sector enjoying a greater share of net lending in the third quarter compared with private businesses [£5.1bn vs. £3.6bn].
“Supply and access to credit is far more plentiful thanks in no small part to FLS, which has brought about record mortgage rates and helped a nation of homebuyers to rediscover its confidence.
“Following a record third quarter performance in terms of net lending, the scheme’s departure from the mortgage market in 2014 is likely to mean rates increasing slightly in the next six to twelve months.
“But mortgage seekers are still in a far better position than they were a year ago and lenders will continue to take advantage of other routes to funding.
“Let’s not forget that before FLS was extended, mortgage lenders were already planning without it for 2014. The added impetus of Help to Buy should also ensure buyers with small deposits will continue to find competitive rates.
“Weaning mortgage lenders off the FLS shows the Bank of England is keeping a careful eye on the pace of growth in the mortgage market and will act to ensure the recovery is sustainable.
“If greater lending to businesses can successfully boost jobs and wages in the months ahead, it will help to ensure property remains an affordable purchase in 2014.”
