While Q2 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, HSBC reveals.

Data from CACI found that 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 with total applications decreasing by 9% in Q2 2026 compared to the same period in 2025.

First-time buyer applications were down 8% over the same period, while remortgage applications fell by 12% and home mover applications were down 8%.

HSBC says the 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.

On a regional basis, 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%).

However, there was significant regional variation. The East of England 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, HSBC head of mortgages and savings Oli O’Donoghue says: “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.”