" Speculation of a base rate rise saw the market remain relatively subdued with year-on-year declines in activity among both first-time buyers and homemovers "
Homemover activity also fell as the rate rise speculation sparked a stall in the market, with 33,700 new homemover mortgages completed in the month, an annual fall of 7.9%.
Instead, remortgaging continued to dominate, rising 8.4% by volume and 13.3% by value on an annual basis.
The number of buy-to-let purchase mortgages fell by 19.4% in June, while buy-to-let remortgaging held steady compared to 2017's figure.
Jackie Bennett, director of mortgages at UK Finance, said: “Remortgaging continued to dominate in June with figures up 13% on the same period last year as existing two and three year products came to an end and borrowers opted for new deals.
“Despite a boost in recent months, speculation of a base rate rise saw the market remain relatively subdued with year-on-year declines in activity among both first-time buyers and homemovers as customers adopted a ‘wait and see’ approach.
“House price inflation has moderated in recent months yet it still remains above earnings growth, and so affordability is still a challenge for would-be borrowers.
“And although the full impact has yet to be felt, tax and regulatory changes continue to bear down on borrowing activity in the buy-to-let purchase market.”
