A growing sense of cautious optimism among homeowners is slowing remortgage activity, according to new figures from adviser tech firm Twenty7tec.
The firm’s latest mortgage market update for June shows that many existing borrowers, particularly second-steppers, are holding off in the hope that rate cuts predicted for later in the year will come to fruition.
Remortgage searches dropped by nearly 10% in June, falling to 645,446 from 716,526 in May – a decline of more than 71,000 searches and one of the sharpest monthly falls recorded in 2025 to date.
Nathan Reilly, director at Twenty7tec, said: “Despite the recent Bank of England announcement that interest rates would be held rather than raised, we are witnessing a quiet yet growing confidence that rates will continue to fall this year.
“We’ve seen months of high remortgage activity, but now people are holding back. There’s undoubtedly a significant portion waiting to commit – potentially influenced by increasing media coverage, with predicted autumn rate cuts encouraging a ‘wait and see’ approach.”
DROP IN SEARCH NUMBERS
Total mortgage searches for June stood at 1,730,872, a drop of 7.78% compared with May but still 11.75% higher than in June last year. First-time buyer searches also fell month-on-month to 329,998 – down 9.7% from May – although the annual trend remains positive, with a 14.5% increase compared with June 2024.
Activity in the residential purchase market among non-first-time buyers followed a similar pattern, with searches declining 7.83% month-on-month to 471,800, slightly below June 2024 levels.
Buy-to-let purchase activity remained broadly flat, with 96,280 searches in June – virtually unchanged on the previous month but 5.34% lower than the same period last year.
Reilly said: “The market has slowed down slightly, but overall activity is significantly healthier than last year. First-time buyer interest remains high, and we are noticing people leaning towards shorter-term fixes – all pointing to some optimism that interest rates may drop next year.
“Will they be rewarded? Or are we heading for disappointment? Only time will tell – but what’s clear is that borrowers are watching the market more closely than ever.
“For advisers there’s an opportunity to double down on proactive engagement, ensuring every lead is nurtured efficiently as summer brings softer demand.”
