Mortgage market activity slowed sharply in December, reflecting the typical seasonal pause at the end of the year, but underlying data points to a stronger overall position than seen earlier in the autumn, according to the latest Twenty7tec Market Snapshot report.
Total mortgage searches reached 1,088,120 in December, down 22.6% month on month compared with November, as adviser and consumer activity tailed off over the festive period. Despite the monthly fall, search volumes were 10.75% higher than December last year, highlighting a more resilient level of engagement across the market.
Residential remortgaging remained the standout area of activity, Twenty7tec said. Searches totalled 431,990, down 19.05% month on month but up 29.31% year on year, the strongest annual growth across all residential categories.
Purchase activity continued to face pressure into year end. First-time buyer purchase searches fell to 199,393, a 24.93% drop compared with November, with year-on-year growth remaining marginal at 0.78%.
Total purchase searches excluding first-time buyers declined 27.39% month on month and were down 3.36% compared with the same period last year, indicating ongoing affordability and confidence challenges.
“This sustained decline in purchase activity reflects wider economic pressures, with high living costs, affordability constraints and cautious consumer confidence continuing to dampen buyers’ willingness and ability to commit to major financial decisions toward the end of the year,” Twenty7tec said.
Buy-to-let activity followed a similar pattern, with total buy-to-let searches down 23.06% month on month, to 189,902. However, volumes were 7.35% higher than December 2024.
Product availability continued to improve over the course of the year, with the total number of mortgage products remaining close to recent highs going into December, providing advisers with a broader range of options despite softer short-term demand.
Nathan Reilly, commercial director at Twenty7tec, said:
“What December really underlines is the stop-start nature of the mortgage market we’ve seen throughout 2025. Earlier in the year, including over the summer, remortgaging activity consistently proved more resilient than purchase demand, and that pattern has continued into the final months of the year.
“The sharp month-on-month drop in December is seasonal and expected, but when you compare it to November and look at the year-on-year picture, it’s clear that underlying intent hasn’t disappeared. Borrowers are active, but they’re taking longer to move and being far more selective about timing.”
The December figures follow a more active November and underline the stop-start nature of the market through 2025, with periods of building intent often followed by short-term pullbacks, Twenty7tec concluded.
“While month-on-month comparisons highlight a clear seasonal slowdown, the year-on-year uplift across several key areas suggests a more stable foundation heading into the new year.”
