Published 30th Aug 2026, 11:45 BST
There were 529,750 refinancing transactions overall during the period – up 28 per cent on the same quarter last year.
The group said that the uplift was driven largely by borrowers coming off fixed deals.
Around half of these will be borrowers seeking to refinance a five-year fixed rate mortgage taken out in 2021, when mortgage rates were at historic lows, UK Finance said.
It comes as the mortgage market remains especially challenging for first-time buyers.
In June, on average, first-time buyers were making initial mortgage repayments equivalent to 22.6 per cent of their gross income – the highest level since 2008.
James Tatch, principal of analytics at UK Finance, said: “First-time buyers are facing the greatest affordability pressure since 2008, as higher mortgage rates mean repayments absorb a larger share of their income.
“By contrast, most borrowers refinancing have already repaid part of their mortgage and benefited from income growth since they first took out their loan, helping to limit the effect of higher rates.”