The United Kingdom’s mortgage lending market made a recovery in the month of July, giving the market its best monthly figures for the entire year.

Home loan and refinancing activity increased by 8 percent on a month-on-month basis between June and July, said the CML, or Council of Mortgage Lenders. This also represented a 2 percent increase between July 2011 and July 2012. This may only be a temporary blip, an increase that shouldn’t be taken as a genuine sign of complete recovery.

According to SPF Private Clients’ Mark Harris, the ongoing eurozone concerns and the recently completed 2012 Summer Olympics may lead to a decrease in activity once August and September data is released. The CML’s Caroline Purdey also cited the Olympics as a possible reason for decreased activity and warned against “one-off effects” like the Olympics and the Diamond Jubilee, events that may skew perception of mortgage activity trends.

Meanwhile, the Bank of England’s Funding for Lending program was unveiled at the beginning of the month, a program that aims to offer affordable lending options to financial and real estate institutions. Funding for Lending would require that the institutions, upon receipt of the funds, lend the money to personal and commercial clients.

Experts, including those from the CML, expect Funding for Lending to eventually benefit the mortgage lending business. The CML said that banks and mortgage lenders alike have reacted quite positively to the program, although at this point it’s too soon to conclude what kind of impact it would have on mortgage lending as a whole.