Mortgage market activity slowed sharply in June as second-steppers and remortgagers hit pause, anticipating the Bank of England will begin cutting interest rates later this year.
The latest figures from mortgage tech platform Twenty7tec show remortgage searches fell nearly 10% month-on-month to 645,446 – a drop of more than 71,000 from May, and the sharpest monthly decline in 2025 so far.
Despite wider signs of market resilience, with total mortgage searches still up 11.75% year-on-year, buyer activity also dipped across several key categories.
First-time buyer searches fell 9.7% from May, and residential purchase searches among non-first-time buyers dropped by 7.8%.
HOLDING BACK
Nathan Reilly, director at Twenty7tec, reckons market participants are holding back in the hope of more favourable deals ahead.
He says: “Despite the recent Bank of England announcement that interest rates would be held rather than raised, we are witnessing a quiet yet growing confidence that rates will continue to fall this year.
“We’ve seen months of high remortgage activity, but now people are holding back. There’s undoubtedly a significant portion waiting to commit – potentially influenced by increasing media coverage, with predicted autumn rate cuts encouraging a ‘wait and see’ approach.”
FIRST-TIME BUYER INTEREST HIGH
He adds: “The market has slowed down slightly, but overall activity is significantly healthier than last year. First-time buyer interest remains high, and we are noticing people leaning towards shorter-term fixes – all pointing to some optimism that interest rates may drop next year.
“Will they be rewarded? Or are we heading for disappointment? Only time will tell – but what’s clear is that borrowers are watching the market more closely than ever.”
The Bank of England is next due to announce its interest rate decision on 1 August, with markets currently pricing in a potential cut before the end of the year.
