The value increased from £6.9 billion to £7.3 billion 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. There were 31,500 remortgages worth £4 billion in July, up from 31,300 worth £3.8 billion in June.
Lending to first-time buyers hit its highest level in a year in July. The value rose to £2.3 billion, from £2.2 billion in June and was the highest monthly total since last July (£2.4 billion).
By number, there were fewer loans to first-time buyers - 18,200 first-time buyer loans, down from 18,500 in June and 19,500 in July 2010.
Both the number and value of loans to home movers increased in July. 30,600 loans were advanced – up by 4% compared to the previous month, while the value totalled £5 billion – up by 6% compared to June.
Compared to July last year lending to home-movers was down by 15% (17% by value). For another month both first-time buyers and home movers experienced little change in lending criteria.
Average deposits for first-time buyers have held steady at 20% for most of 2011 and they typically borrowed 3.18 times their income in July, down from 3.22 in June.
Home movers borrowed on average 69% of their property’s value in July, down from 70% in June, but this figure has fluctuated by no more than three percentage points for nearly three years.
The popularity of fixed-rate mortgages is beginning to recede after hitting a 18-month high in April. In July, 60% of borrowers took out a fixed-rate product, down from 62% in June.
This drop follows increasing expectation that there will be no rise in bank rates in the near future. But the path of interest rates into next year is far from certain and many borrowers may continue to opt for fixed rates to avoid the uncertainty.
The majority of borrowers are continuing to opt for repayment mortgages. 42,200 loans for house purchase (86%) and 24,300 remortgage loans (77%) were taken out on a repayment basis in July.
Commenting on the data, 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 is likely that this reflects weak consumer appetite for borrowing, more than any additional constraints on the availability of mortgages."
Brian Murphy, Head of Lending at the Mortgage Advice Bureau, said:
"With the UK economy suffering a barrage of bad news, and the country as a whole haunted by weak growth prospects, both mortgage lenders and borrowers are feeling more than a little punchdrunk.
"Borrowers are clearly still deeply wary. This data shows that total lending to first time buyers rose in July, but the number of first time buyer loans was down both on the previous month and on the same time last year.
"It was particularly interesting to note the start of a gradual shift away from fixed rates towards variable rates.
"While during uncertain times like these, people's instinct is to seek out the stability and security of a fixed rate, more are being tempted by variable rates.
"This is less of a vote of confidence in the economy than a recognition that its continued weakness will force the Bank of England to keep interest rates at rock bottom.
"All the economic mood music is that the base rate will stay at its current record low level until well into next year, and possibly even longer.
"As a result variable rates are suddenly looking less risky. There is a hint of encouragement here for the lenders, but lending levels are still low and there is a long way to go until this bruised industry can return to anything like normal."
