Gross mortgage lending last month rose to £12.7 billion, according to estimates from the Council of Mortgage Lenders (CML).

July lending increased by 8% from £11.7 billion in June and was 2% higher than the total of £12.5 billion in July 2011.

“Gross mortgage lending showed an 8% increase from last month, continuing the see-saw pattern seen throughout this year, albeit against a broadly flat market,” explained Caroline Purdey, CML market and data analyst.

“Interpretation of recent trends continues to be challenged by one-off effects. We look forward to the September figures when the distorting effects of the Diamond Jubilee and the Olympics should largely have worked their way through.”