While the second quarter of 2026 saw an overall decline in mortgage applications across all borrower segments, this was much less pronounced among first-time buyers and home movers compared to remortgage applications.
Mortgage applications down
The total number of mortgage applications was down by 19% between Q2 and Q1, but applications from first-time buyers were down just 9%, while home mover applications reduced by 8%. The overall fall in applications was mainly driven by remortgage applications, which were down 38%.
Applications were also down year-on-year. Total applications decreased by 9% in Q2 2026 vs Q2 2025. First-time buyer applications were down 8% over the same period, while remortgage applications fell by 12%. Home mover applications were down 8%.
This picture around first-time buyers was reflected in LTV trends. The number of applications for products with an LTV of more than 90% were down just 6% on Q1.
Regional insight
Looking at the regional picture, every mainland region of Great Britain saw new application volumes fall between Q2 and Q1, but some significantly more than others.
London saw the biggest fall in applications at 25%, while the most resilient was Scotland, where applications were down 9%.
Year-on-year, all regions again saw a decrease in application volumes. Again, this was most pronounced in London (17%), with the South East also seeing a significant decline (14%).
There was significant regional variation, however. The East of England, for example, saw application volumes fall by a comparatively meagre 2% and was the only region to see an increase (1%) in the value of applications year-on-year.
Commenting on the UK mortgage market, Oli O’Donoghue, HSBC UK’s Head of Mortgages and Savings, 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.”
