Remortgage activity saw a notable increase in July, with searches climbing 7% month-on-month. This trend highlights a shift in borrower behaviour as affordability pressures continue to impact the purchase market.
What Does the Increase in Remortgage Searches Mean?
The latest data shows that residential remortgage searches reached 700,628 in July, marking a 5% increase year-on-year. This uptick suggests that homeowners are actively seeking better mortgage deals, possibly in response to rising interest rates and the need to manage their financial commitments effectively. The overall mortgage search activity rose by 1% compared to June, indicating continued engagement from borrowers and brokers alike.
How Are Purchase and Buy-to-Let Markets Performing?
In contrast to the remortgage sector, residential purchase searches fell by 3% from June, while first-time buyer searches decreased by 4%. This decline reflects the ongoing affordability issues that are causing potential buyers to hesitate. Despite this, first-time buyer activity remains slightly ahead of July 2025, suggesting that demand is still present, albeit cautiously. The buy-to-let market is facing challenges as search volumes are slightly below last year, indicating a more subdued interest from landlords.
What This Means for Borrowers and Brokers
For borrowers, the rise in remortgage searches indicates a proactive approach to securing more favourable mortgage terms. Brokers should be prepared to assist clients in navigating these options, especially as the purchase market remains slow. Keeping an eye on current mortgage rates will be essential for those looking to remortgage or enter the market.
Frequently asked questions
Why are remortgage searches increasing?
The increase in remortgage searches is driven by homeowners seeking better mortgage deals amid rising interest rates and affordability concerns.
What should first-time buyers consider now?
First-time buyers should remain informed about market conditions and potential mortgage options, as demand persists despite affordability challenges.