Mortgage applications jumped 41.7% year-on-year (YoY) in June , pointing to a clear rebound in borrower appetite, according to Stonebridge data.
The figures come from the network’s first Mortgage Market Briefing, which uses data from its national adviser network.
Borrowers are now £888 a year better off on average, as mortgage rates dropped 0.62% over the past year.
Nearly two-thirds of borrowers picked short-term deals in June, showing many are looking to benefit from possible rate cuts.
Over 95% of borrowers still chose fixed rates, preferring certainty.
Rob Clifford (pictured), CEO of Stonebridge, said: “Mortgage rates may have fallen by only 62 basis points over the past year, but that modest drop is saving the average borrower £888 annually – a welcome boost at a time when household budgets remain stretched.
“While inflation remains elevated, we believe the Bank of England will cut rates at least once more this year – potentially at the Monetary Policy Committee’s next meeting in August.
“Any further cuts should feed through into lower mortgage rates in time, which should strengthen affordability and tempt borrowers back to market in greater numbers.”
Clifford added: “The green shoots of recovery are already visible, with mortgage applications up nearly 42% in June.
“That’s a clear sign that buyer confidence is returning. Any further falls in rates could supercharge that momentum, supporting both mortgage lending and housing market activity in the second half of the year.”
