Mortgage applications jumped 9.2% year-on-year in July, Stonebridge reveals, confirming sustained market momentum as borrowing prices fall.
In Stonebridge’s newest knowledge from its nationwide community of advisers it discovered that the common mortgage price dropped to 4.44%, down 62 foundation factors from a yr earlier.
This means the standard borrower has saved round £890 a yr.
Meanwhile, remortgages made up practically 60% of exercise, pushed by fixed-rate maturities and a need to safe higher offers.
Data reveals that 96% of latest debtors are choosing mounted charges in July, which is unchanged from a yr in the past.
While tracker charges are cheaper than mounted offers, the hole is sufficiently small that debtors are selecting fixes.
It additionally reveals that two-thirds of those that mounted in July selected offers lasting three years or much less – up from slightly below 61% a yr in the past.
Stonebridge highlights that regardless of the affordability pressures of the previous two years, there’s been no significant shift in direction of interest-only borrowing.
In July, 81.2% of latest loans had been on a reimbursement foundation – nearly an identical to a yr in the past – exhibiting that curiosity solely stays a distinct segment a part of the market.
Last month, buy loans made up 40.6% of exercise, down from 50% a yr in the past.
Commenting on the newest figures, Stonebridge chief government Rob Clifford says: “After a bruising couple of years, the mortgage market is beginning to discover its ft once more, with falling charges boosting exercise and giving a much-needed confidence enhance to debtors.”
“Applications jumped 9.2% in July in contrast with a yr in the past, proof that cheaper borrowing is beginning to grease the wheels of the market. The common price on new loans has dropped to 4.44% – 62 foundation factors decrease than final July.”
“While mortgage charges stay a lot greater than they had been a number of years in the past, the autumn over the previous 12 months has been significant. On a typical 25-year time period, that’s price round £890 a yr again in debtors’ pockets.”
“With the potential for 2 additional price cuts this yr, the market ought to proceed its restoration in the second half of 2025. We’re not again to the increase instances, however in contrast with the place we had been 12 months in the past, this can be a a lot more healthy market.”
