Lending increased from £6.9bn to £7.3bn and the volume from 47,800 to 48,800. Both were at their highest since last August, though lower than July 2010.

By contrast, remortgaging rose both on a monthly basis, and on the same month last year. In the region of 31,500 remortgages were agreed worth £4bn in July, up from 31,300 worth £3.8bn in June.

Lending to first-time buyers also hit its highest level in a year in July. Lending  rose to £2.3bn, from £2.2bn in June and was the highest monthly total since last July when the value stood at £2.4bn.

Both the number and value of loans to home movers increased in July. Around 30,600 loans were advanced, up by 4% compared to the previous month, while the value totalled £5bn, up by 6% against June. However, against July last year, lending to home movers was down by 15%.

For another month, both first-time buyers and home movers experienced little change in lending criteria. Average deposits for first-time buyers held steady at 20% for most of 2011, with the typical borrowing amount around 3.18 times their income in July, down from 3.22 in June.

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CML director general Paul Smee, said: “The UK mortgage market is currently holding steady. But August saw global financial turmoil and unrest closer to home and recent Bank of England approvals figures do not necessarily suggest a continuing upturn in lending in coming months. However, it’s likely that this reflects weak consumer appetite for borrowing, more than any additional constraints on the availability of mortgages.”