First-time buyer and home mover demand holds up as mortgage applications fall

First-time buyers and home movers proved more resilient than remortgage borrowers during a weaker second quarter for the mortgage market, figures from HSBC UK show.

MORTGAGE APPLICATIONS DECLINE

The total number of mortgage applications fell by 19% between the first and second quarters of 2026. First-time buyer applications declined by 9% and home mover applications by 8%, while remortgage applications dropped by 38%.

Application numbers were also lower than a year earlier. Total applications decreased by 9% in the second quarter compared with the same period in 2025, with first-time buyer and home mover applications both down by 8%. Remortgage applications fell by 12%.

The relative resilience of first-time buyer demand was also evident among applications for products with a loan-to-value ratio above 90%, which declined by 6% from the first quarter.

REGIONAL DIFFERENCES

Every mainland region of Great Britain recorded a fall in new mortgage application volumes between the first and second quarters, although the scale of the decline varied.

London experienced the largest quarterly fall, at 25%, while Scotland was the most resilient region, with applications down by 9%.

Application volumes also declined year on year in every region. London again recorded the steepest fall, at 17%, followed by a 14% decline in the South East.

The East of England recorded a comparatively modest 2% reduction in application volumes and was the only region where the value of applications increased year on year, rising 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.”