Data from July’s mortgage market suggests the purchase market is steady with a small dip in the numbers of searches in July compared with June. Year-on-year volumes are one percentage point apart when comparing July 2025 with July 2026.
Twenty7tec’s latest Mortgage Market Snapshot reveals residential purchase searches were 3% lower than June, while first-time buyer searches fell 4% during the month. However, first-time buyer activity remained slightly ahead of July 2025, suggesting demand has not disappeared even as affordability continues to influence when and how buyers enter the market.
There were 1,790,196 mortgage searches during July, up 1% on June and broadly unchanged from the same month last year. According to Twenty7tec, the figures point to a market where different borrower groups are moving at noticeably different speeds, rather than signalling a significant rise or fall in demand.
The clearest momentum came from remortgaging. Residential remortgage searches increased 7% month on month and 5% year on year, reaching 700,628. Three quarters of a million households with fixed rate deals below 3% are set to expire in 2026 according to the Bank of England.
With the average standard variable rate interest at 7.13%, down by 0.29% year-on-year from 7.42%, the incentive to remortgage “remains strong”, according to money comparison site Moneyfacts. The highest recorded rate was 8.19% during November and December 2023.
Remortgaging searches were the “standout story” of the month according to Nakita Moss, head of lender at Twenty7tec.
She explained: “As more borrowers reach the end of existing fixed-rate deals and lender competition remains strong, advisers have an important role to play in helping clients navigate an increasingly competitive market.”
The changing shape of mortgage demand is also increasing the importance of advice, Twenty7tec said. Joint borrower sole proprietor arrangements remained the most searched lending criteria during July, alongside visa applicants, foreign nationals and borrowers with previous credit issues.
“Rather than pointing towards one clear direction for the mortgage market, July’s figures suggest borrowers are responding differently according to their circumstances”, the fintech company suggested.
Lenders have been forced into a u-turn on fixed rate mortgage cuts in July as fixed rates rose month-on-month for the first time since April, with the average two and five year fixed rates rising by 0.11% and 0.14% respectively, to 5.63% and 5.66%. The rate had fallen by 0.12% from 5.59% in June. The rate was last below 5% in March 2026 (4.90%).
According to Rachel Springall, finance expert at Moneyfacts, ongoing concerns over the future outlook of interest rates have led to swap rate volatility, driven by unrest in the Middle East.
“The prolonged conflict has driven up oil and energy prices, raising inflationary fears which could in turn lead to future Base Rate increases by the Bank of England”, she explained.
“In positive news, mortgage product availability rose for a fourth consecutive month, with 90% of deals returning since the mass withdrawals seen between March and April. This includes increased choice across selected higher loan-to-value tiers, such as at 95% and 90% LTV.
“There is always more room for improvement to the choice of deals in this sector, especially to draw in new business from first-time buyers, who remain the lifeblood of the mortgage market. After a significantly volatile few months, it will be vital for lenders to tailor their ranges to cater to demand and support existing customers, such as tweaking affordability criteria or offering upfront cost-saving packages.”
