Gross lending however fell 14% on a monthly basis from the £12.2bn lent in December 2011.
The CML said the seasonal decline was expected and that January was the sixth month in a row of higher year-on-year lending.
Bob Pannell, chief economist at the CML, said: “Housing and mortgage market sentiment has improved a little over recent weeks.
“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March.
“Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track.”
Paul Hunt, managing director of Phoebus Software, said: “The important dynamic in the mortgage market is the growing confidence of mortgage lenders, driven by their ability to offer unprecedentedly affordable finance, which has led to half a year of annual increases in gross lending.
“A low base rate and assorted public sector schemes have certainly helped but ultimately it is the boldness of lenders that has boosted volumes as they have refused to be cowed by the various looming economic threats.
“Regardless of what 2012 throws at the UK economy the fact lenders are prepared to support the market wherever they can will be boon in the coming year.”
David Brown, commercial director of LSL Property Services, added: “CML’s latest figures point to a steadily strengthening mortgage market.
“While a surge of demand from first-time buyers trying to beat the end of the stamp duty holiday may have helped boost mortgage lending in January, it is by no means the only reason - lending has been gradually improving for the last six months.
“Mortgage rates are more affordable than ever and this is helping to sustain demand from both home buyers and investors.”
Brown added that the resurgence of the buy-to-let market had also been key to the consolidation of the mortgage market and it would continue to be so.
“As rents rise and buoyant tenant demand keeps landlords’ void periods to a minimum, investment in the private rented sector looks increasingly attractive and it is these fundamentals that are drumming up demand for buy-to-let mortgages.”
Statistics from the CML are collated from banks, mutuals and other lenders which together undertake around 94% of all residential mortgage lending in the UK.
Currently the CML estimates that there are 11.2m mortgages in the UK with loans worth over £1.2tn.
