First-time buyer and home mover markets show resilience in Q2 – HSBC
HSBC said the resilience of the first-time buyer market was also reflected in higher loan-to-value (LTV) lending, with applications for mortgages above 90% LTV falling by just 6% compared with the previous quarter.
First-time buyers and home movers remained the most resilient parts of the mortgage market during the second quarter of 2026, despite an overall decline in mortgage applications, according to HSBC UK.
The bank said total mortgage applications fell by 19% between the first and second quarters, driven primarily by a 38% drop in remortgage applications.
In comparison, first-time buyer applications declined by 9%, while home mover applications fell by 8%.
On an annual basis, total mortgage applications were down 9% compared with Q2 2025.
First-time buyer and home mover applications both fell by 8%, while remortgage applications declined by 12%.
HSBC said the resilience of the first-time buyer market was also reflected in higher loan-to-value (LTV) lending, with applications for mortgages above 90% LTV falling by just 6% compared with the previous quarter.
Regionally, all mainland areas of Great Britain recorded lower application volumes between Q1 and Q2.
London experienced the largest quarterly decline, with applications falling 25%, while Scotland proved the most resilient, with volumes down 9%.
Year-on-year, London again recorded the sharpest fall, down 17%, followed by the South East, where applications declined by 14%.
The East of England saw the smallest annual decline in application volumes, down 2%, and was the only region to record growth in the value of mortgage applications, which increased by 1%.
Oli O’Donoghue, head of mortgages and savings at HSBC UK, said: “Overall it was a slower quarter for the mortgage market with a reduction in applications on the previous quarter and on Q2 last year.
“But when you look closely there are positive signs – despite ongoing cost-of-living pressures, the first-time buyer and home mover markets remained relatively resilient, showing there continues to be a strong appetite to get on the housing ladder or move to a new home.
“We have a variety of products and support for both first-time buyers and home movers and would encourage customers to speak to us to find out more.”
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