Total mortgage lending during July rose by 8% to £12.7 billion, offering some hope to potential borrowers.
According to latest figures from the Council of Mortgage Lenders (CML), mortgage lending from banks and building societies was £1 billion higher than June's total figure of £11.7 billion and 2% more than the amount lent in July 2011.
Despite the encouraging data, experts have warned that the market is 'still broadly flat' and is currently 'see-sawing', as opposed to showing signs of a recovery.
As the effects of the financial crisis rumble on, mortgage lenders remain cautious as to whom they lend to. The Government's Funding for Lending Scheme, launched earlier this month, is hoped to improve the mortgage market and boost lending to consumers.
Caroline Purdey, market and data analyst at the CML, said: "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."
Find the best mortgage rate - Compare best selling mortgages
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.