Mortgage and protection network, Stonebridge, has released its latest mortgage data for November, showing a rise in both mortgage applications and loan sizes.
Drawing on a dataset from its national network of advisers - who facilitated more than £12bn of lending last year - the index offers a real-time snapshot of how borrower behaviour and mortgage market trends are evolving.
November's headline figures show that the average loan size rose by 3.5%, now sitting at £207,929, while the number of mortgage applications recorded was 11.6% higher than in November last year.
In addition, the average mortgage rate dropped by 39 basis points from the previous month to 4.35%.
The data shows that this year has been particularly strong for refinancing, driven by a large volume of fixed rate loans coming up for renewal. As a result, remortgages and product transfers continue to make up the majority of activity, accounting for nearly two thirds of cases in November.
While this may give the impression that purchase lending is weak, purchase activity has in fact been stronger in almost every month this year compared with the same month in 2024. It is simply the sheer number of maturing loans that has skewed overall activity towards refinancing.
Looking ahead, next year is also expected to be strong for remortgages, as borrowers continue to take advantage of more attractive rates and competitive deals. If the Bank of England delivers the anticipated two-to-three rate cuts over the coming months, even more borrowers could refinance, further supporting overall market activity.
Rob Clifford, chief executive of Stonebridge, said: “The fact that mortgage applications are up 11.6% year-on-year in November, despite a range of economic headwinds, demonstrates that the mortgage market continues to display notable resilience.
“Much of this growth has been fuelled by falling mortgage rates, which are 39 basis points lower than they were a year ago, on average, making borrowing more affordable and attractive to prospective buyers but also those wondering whether to refinance or not.
“Markets have already priced in another two-to-three cuts over the coming 12 months, which should theoretically limit the scope for mortgage rates to fall much further. However, lenders are competing hard at present, which is likely to apply additional downward pressure on rates and provide extra momentum for the market.
“Now that the uncertainty surrounding the Autumn Budget is behind us, buyers are expected to feel more confident, helping to unblock activity that may have been held back in recent months.”
