Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

First-Time Buyers and Homemovers Show Resilience Amid Mortgage Application Slowdown

First-time buyers and homemovers experienced smaller declines in mortgage applications than remortgagors during the second quarter of 2026, according to data from CACI. The overall mortgage market saw a slowdown, with total applications falling by 19% between Q1 and Q2 2026.

Figures reported by Mortgage Solutions show that remortgage applications dropped by 38% over the quarter, while applications from first-time buyers and homemovers fell by 9% and 8% respectively. On an annual basis, total mortgage applications were down 9% compared to Q2 2025. Applications from first-time buyers and homemovers both declined by 8% year-on-year, while remortgage applications fell by 12%.

Demand among first-time buyers was also reflected in loan-to-value (LTV) trends. Applications for products with an LTV above 90% were down by just 6% compared with the previous quarter.

Regional Trends

Every mainland region of Great Britain recorded a fall in mortgage application volumes between Q1 and Q2 2026. London experienced the largest quarterly decline at 25%, while Scotland saw the smallest at 9%. Compared with a year earlier, all regions also recorded lower application volumes. London again saw the largest annual fall, down 17%, while the South East reported a 14% decline. The East of England was among the strongest performing regions, with application volumes down by just 2% year-on-year. It was also the only region to record an increase in the value of applications, which rose by 1%.

Bank of England data showed that gross lending increased between May and June, despite the fall in application numbers.

These trends may be relevant for letting agents and inventory clerks monitoring market activity and regional shifts in demand.