Mortgage brokers say the rush towards remortgaging shows no signs of slowing, reinforcing Bank of England figures that show house purchases continue to dip.
Net mortgage approvals for house purchases fell to 56,100 in July, down from 58,200 in June, while approvals for remortgaging rose to 34,500 from 34,100, according to the latest figures from the Bank on 1 September.
The Bank also reported that the effective interest rate on new mortgages had risen to 4.45% in July, from 4.35% in June.
The latest Twenty7tec data similarly points to stronger remortgage activity as purchase searches have softened. Its July Mortgage Market Snapshot showed overall mortgage search activity remaining resilient, with purchase activity easing while remortgaging gathered momentum.
Borrowers are increasingly approaching the end of their deal early, particularly coming off a cheaper five-year fix
The technology firm’s data also reflects the volatility seen earlier in the year. Mortgage searches surged to 2.15 million in March before falling sharply in April and recovering in June. By May, residential purchase searches had fallen 5% month on month to 626,029, while residential remortgage searches had dropped 9% to 563,124.
A stronger remortgage market and weaker purchase market were also predicted by trade body UK Finance in its 2026–27 market forecast, which said house purchase lending would be £180bn in 2026, down 2%, while remortgaging would be a much smaller £77bn, but up 10%.
The figures reinforce what many mortgage brokers are now seeing on the ground, with borrowers who are approaching the end of a fixed-rate deal increasingly focused on securing a new rate, while some prospective buyers remain reluctant to commit.
L&C Mortgages associate director David Hollingworth says: “We’ve seen an increased split towards remortgaging for a few months.
“Earlier in the year we saw an improvement in rates… and you would expect a bump in purchase activity as a result.
That was turned upside down by the resurgence of the Iran war. Some people wanting to remortgage brought that decision forward.
It’s really difficult to judge the perfect time to buy. Some people are holding off, waiting for rates to come down
“So there is a lot of refinance activity, and purchase has been muted. First-time buyers are still key.
But it has been easy for many purchasers to make a case for waiting.”
Trinity Financial product and communications director Aaron Strutt says: “We definitely are getting more remortgages. Some bigger banks aren’t offering particularly good product transfer rates, so they are leaving customers with the difficult choice of sticking with their lender and paying more or having the hassle of remortgaging.”
Strutt says the reasons for remortgaging are not necessarily limited to coming to the end of a fixed-rate period. Some borrowers are also using the opportunity to raise funds for home improvements or make other changes to their mortgage.
“A lot comes down to price but also making changes to the mortgage,” he says, adding that most borrowers are keeping their existing lender.
I have seen people waiting an awfully long time and they have decided to buy or they’ll be waiting forever
The stronger remortgage market comes as thousands of homeowners continue to roll off fixed-rate deals agreed when borrowing costs were far lower. The Bank of England said in July that nearly 750,000 households paying less than 3% interest would come off a fixed-rate mortgage during 2026, with those borrowers facing an average rise of around £170 a month in repayments.
MSP Financial Solutions director Chris Sykes says borrowers are increasingly approaching the end of their deal early, particularly those coming off a cheaper five-year fix.
“People are taking remortgaging seriously,” he says. “We are heavy on the remortgage side at the moment.”
But neither broker believes the purchase market is on its knees.
Sykes says there are still “a good number of purchases coming through”, while Strutt says his firm continues to receive plenty of purchase enquiries.
Strutt adds that some lenders report being less busy than they would like, with larger banks saying their phones are not ringing as much as expected. Mortgage rates, he says, are still higher than hoped, creating another obstacle for buyers trying to work out if now is the right time to move.
First-time buyers are still key. But it has been easy for many purchasers to make a case for waiting
“It’s really difficult to judge the perfect time to buy,” he observes. “Some people are holding off, waiting for rates to come down.”
The latest Bank figures support that cautious picture. July’s 56,100 purchase approvals were below the average of around 60,800 recorded over the previous six months.
Sykes says some borrowers have spent so long waiting for conditions to improve that they are now deciding to go ahead regardless.
“I have seen people waiting an awfully long time and they have decided to buy or they’ll be waiting forever,” he says.
This article featured in the September 2026 edition of Mortgage Strategy.
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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by finopulse.
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