Mortgage and protection network, Stonebridge, has launched its inaugural ‘Mortgage Market Briefing’, with its data showing that mortgage applications jumped 41.7% in June – signaling a strong rebound in borrower appetite.
The figures show that borrowers are now £888 a year better off on average, as mortgage rates fell 62bps over the past year.
Nearly two thirds of borrowers chose short-term deals in June, a sign that they are positioning themselves to benefit from future rate cuts.
However, fixed rates remain dominant, with over 95% of borrowers opting for the certainty they offer.
Rob Clifford, chief executive of Stonebridge, commented: “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.
“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.”
