Stonebridge, one of the UK’s largest mortgage and protection networks, has reported a significant uplift in mortgage market activity in its latest Mortgage Market Briefing for September 2025.
Drawing on data from its nationwide network of advisers, which facilitated more than £12bn of lending last year, the report reveals a 22.7% year-on-year rise in mortgage applications, alongside a fall in average rates and a steady rebound in borrower confidence.
The average loan size increased by 0.9% from August to £197,440, while the average mortgage rate dropped by 32 basis points to 4.4%.
Stonebridge said this reduction equates to an annual saving of around £432 for a typical borrower compared with 12 months ago.
Rob Clifford, chief executive of Stonebridge, said: “The mortgage market is shifting up a gear. Applications rose 22.7% year-on-year in September, a clear sign that confidence is returning, even in the face of wider economic headwinds.
“A big driver is the fall in rates from their recent peak. The average rate on new lending now stands at 4.40%, down 32 basis points year-on-year. For a typical borrower, that equates to around £432 in annual savings compared with 12 months ago.
“While the Bank of England remains cautious on the future path of interest rates, current levels appear low enough to spur borrowers back into action.
“Coupled with the large number of loans due to mature in 2025, that should help underpin activity through the remainder of the year.”
The report also shows that fixed-rate products remain dominant, with 95.4% of borrowers opting for fixed deals in September, down just over one percentage point year-on-year.
Shorter fixed terms are increasingly popular, with 63.7% of new fixed-rate loans arranged for three years or less, compared with 56% last year. Clifford said this demonstrates how borrowers are seeking flexibility amid economic uncertainty.
Repayment mortgages accounted for 81% of new lending, with interest-only remaining a specialist option.
Meanwhile, refinancing continued to drive activity, representing 61.5% of applications, up from 57% a year ago.
Clifford said the rise reflected a strong refinancing wave rather than weakness in the purchase market, noting that around 1.6 million fixed-rate deals are due to mature before the end of 2025.
The data also indicated a slight fall in average loan-to-value (LTV) ratios, suggesting borrowers are increasing deposits to secure better rates.
