Stock indices closed higher as Greece and its lenders reached a deal. "EuroSummit has unanimously reached agreement. All ready to go for ESM programme for Greece with serious reforms and financial support," European Council President Donald Tusk said on Monday.

The deal needs to be approved by national parliaments before talks about a bailout programme can start.

The Greek government should have to pass a series of reforms, including tax and pensions reforms, into law by Wednesday to restore trust.

"The advantages far outweigh the disadvantages. The country which we help has shown a willingness and readiness to carry out reforms," German Chancellor Angela Merkel said on Monday.

The Bank of England released its quarterly Credit Conditions Survey on Monday. Demand for mortgages in the second quarter rose. It was the strongest increase in demand for mortgages since the end of 2013.

According to the report, demand for loans from small and big businesses climbed, and it was expected to increase in the third quarter too.

Indexes on the close:

Name Price Change Change %

FTSE 100 6,737.95 +64.57 +0.97 %

DAX 11,484.38 +168.75 +1.49 %

CAC 40 4,998.1 +95.03 +1.94 %