Gross mortgage lending in July was an estimated £12.6 billion, according to the Council of Mortgage Lenders (CML).

This is 1% lower than June’s gross lending figure of £12.68 billion and a 6% fall from £13.3 billion in July 2010.

CML chief economist Bob Pannell, said: “UK economic prospects have deteriorated as a result of weaknesses in some of the major economies and renewed stresses in the eurozone area associated with the sustainability of government finances.