Remortgaging Surges as Purchase Demand Slows

The UK mortgage market is experiencing a two-speed phenomenon, where different borrower groups are moving at varying speeds. According to Twenty7tec's Mortgage Market Snapshot for July, residential purchase searches were 3% lower than June, while first-time buyer searches fell by 4%. However, first-time buyer activity remained slightly ahead of July 2025, indicating that demand has not disappeared despite affordability concerns.

The remortgaging market, on the other hand, saw significant growth. Residential remortgage searches increased by 7% month-on-month and 5% year-on-year, reaching 700,628 in July. This surge is attributed to three quarters of a million households with fixed-rate deals below 3% set to expire in 2026, according to the Bank of England.

Nakita Moss, head of lender at Twenty7tec, emphasized that as more borrowers reach the end of their existing fixed-rate deals and lender competition remains strong, advisers have an important role to play in helping clients navigate an increasingly competitive market.