Remortgage activity has seen a notable uptick in July, with searches increasing by 7% month-on-month, indicating a shift in borrower behaviour amidst ongoing economic challenges. This rise contrasts with a slowdown in purchase and buy-to-let (BTL) searches, highlighting the varied responses of different borrower groups.
TL;DR: July recorded a 7% increase in remortgage searches, reaching 700,628; this trend suggests that borrowers are actively seeking better deals despite affordability pressures.
What Are the Latest Trends in Remortgaging?
According to recent data, July saw a total of 1,790,196 mortgage searches, reflecting a 1% increase from June and remaining stable compared to the same month last year. The surge in remortgage searches, which rose 5% year-on-year, indicates that homeowners are taking advantage of opportunities to secure more favourable terms amidst fluctuating interest rates.
How Are Purchase and Buy-to-Let Markets Performing?
In contrast to the remortgage sector, the residential purchase market has shown caution, with searches falling by 3% compared to June. First-time buyer searches also dipped by 4%, although they remain slightly ahead of July 2025 levels. This suggests that while demand is still present, affordability issues are causing potential buyers to hesitate. The buy-to-let market faces its own challenges, with search volumes slightly below last year, indicating a more cautious approach from landlords.
What This Means for Borrowers and Brokers
The increase in remortgage searches signals that many homeowners are prioritising refinancing options to navigate the current economic market. For brokers, this presents an opportunity to assist clients in finding competitive remortgage deals. Meanwhile, potential buyers, particularly first-time buyers, may need to reassess their strategies in light of affordability pressures, while landlords should stay informed about market trends affecting buy-to-let investments.
Frequently Asked Questions
Why are remortgage searches increasing?
Remortgage searches are rising as homeowners seek better deals amid changing interest rates and economic uncertainty.
What challenges are first-time buyers facing?
First-time buyers are experiencing affordability pressures, leading to a decline in search activity, although demand remains slightly higher than last year.