Stonebridge reported a 9.2% rise in mortgage applications in July 2025 compared with the previous year, as lower borrowing costs encouraged more activity in the market.
The figures come from the network’s Mortgage Market Briefing, which uses data from its national adviser network.
The average mortgage rate fell to 4.44%, down 0.62% in July last year, saving a typical borrower about £890 a year on a 25-year term.
Remortgages accounted for nearly 60% of all activity, driven by fixed-rate maturities and homeowners looking to lock in better deals.
Rob Clifford (pictured), CEO of Stonebridge, said: “After a bruising couple of years, the mortgage market is starting to find its feet again, with falling rates boosting activity and giving a much-needed confidence boost to borrowers.
“Applications jumped 9.2% in July compared with a year ago, proof that cheaper borrowing is starting to grease the wheels of the market.
“The average rate on new loans has dropped to 4.44% – 0.62% lower than last July.”
Clifford added: “While mortgage rates remain much higher than they were a few years ago, the fall over the past 12 months has been meaningful.
“On a typical 25-year term, that’s worth around £890 a year back in borrowers’ pockets.
“With the potential for two further rate cuts this year, the market should continue its recovery in the second half of 2025.
“We’re not back to the boom times, but compared with where we were 12 months ago, this is a much healthier market.”
