Yorkshire Building Society (YBS) has released its latest analysis of mortgage application figures from data and technology consultancy CACI.
Between 29 June and 27 September 2026, 118,881 first-time buyers applied for a mortgage, down from 123,149 during the same period in 2025.
However, YBS described this as resilience from first-time buyers in light of economic uncertainty and affordability pressures.
Considerable decline in homemovers
In Q3, applications from existing homeowners looking to move fell by 10.2% year-on-year, declining from 108,844 to 97,732.
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Remortgaging activity increased significantly over the same period, with applications rising 12% year-on-year from 102,424 to 114,717.
By comparison, between Q1 and Q2, homemover applications fell by 8%, while remortgage applications declined by 38%.
Max Shepherd, group economist at YBS, said: “The challenge for FTBs today is that mortgage rates have increased considerably since the beginning of H2, with affordability still a challenge, as moves have been driven by the global impacts of the Iran war.
“What we’re seeing now is not a sudden fall away in demand, but a reflection of rising interest rates dampening affordability. The fact that first-time buyer activity has held up considerably better than the homemover market suggests the aspiration to own a home remains very strong.”
Shepherd continued: “These latest figures demonstrate that there is no room for complacency. While first-time buyers remain resilient, activity has cooled from the very strong levels seen over the last two years and affordability continues to be a significant challenge for many households.”
