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July 30.2025
2 Minutes Read

June 2025 Sees Spike in Remortgaging Activity: What Homeowners Need to Know

Cardboard houses on coins illustrating remortgaging spikes in June

Remortgaging in the UK Hits New Heights

June 2025 has marked a significant month for homeowners across the UK, with remortgaging activity reaching levels not seen since October 2022. According to data released by the Bank of England, there were 41,800 remortgages completed in June, an increase of 200 from May. This uptick in activity is indicative of several factors affecting the mortgage landscape, particularly as borrowers seek out the best possible rates amidst a changing economic environment.

The Current Market Landscape

As households deal with the impending expiration of fixed-rate mortgage deals from the pandemic period, many are feeling the pressure of potential rate shocks. John Phillips, chief executive of Just Mortgages, emphasized that 2025 was anticipated to be a busy year for mortgage renewals. Many homeowners are now recognizing the importance of re-evaluating their current financial arrangements and are keen to explore their options to secure more favorable deals before their existing deals come to an end.

Increased Borrower Activity

It's clear that borrowers are not just sitting back and watching the market. The desire to shop around for better mortgage rates is quite pronounced, with many ready to face the challenges of switching lenders. Mark Harris, from SPF Private Clients, noted that even with the hassle involved, borrowers are motivated to pursue better opportunities. There were also 64,000 loans issued for house purchases in June, increasing by 900 from May, suggesting that there’s still movement in the housing market despite the challenges.

Understanding the Trends: What's Shaping the Market?

While new mortgage activity continues, experts like Hina Bhudia of Knight Frank Finance have pointed out that the market is showing signs of stagnation. The pace of annual house price growth has slowed considerably since the changes in stamp duty in April. However, there may be new momentum as we shift into autumn. Factors such as healthy wage growth and potential support from Bank of England policies indicate that mortgage rates could see downward adjustments, providing a more favorable environment for borrowers.

What Lies Ahead for Homeowners?

Looking ahead, the key insights from these market dynamics suggest that homeowners and potential buyers should remain vigilant. As lenders operate on tight margins, they are likely to respond swiftly to any drops in funding costs. This could mean better deals become available soon, particularly as we approach a typically busier season in the property market.

Keeping the Pulse on Market Developments

With the ongoing changes in the UK property landscape, homeowners and investors are encouraged to stay informed and proactive. Whether considering remortgaging or exploring retirement options, being aware of these trends can empower more informed decisions. Continuous engagement with mortgage brokers and financial advisors is crucial to navigate these market shifts effectively.

As we move through the summer and into the broader autumn market, acting on this information can lead to significant savings and better financial planning for the future.

Property Pulse

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