Data from mortgage technology and data company Twenty7tec reveals a continued overall drop in total residential searches, with first time buyer searches experiencing the steepest decline, but an increase in remortgage activity.
The slowdown reflects both affordability pressures and a pause for clarity ahead of the upcoming autumn budget, Twenty7tec said.
Total residential searches were 3.2% lower year-on-year, with residential purchase searches excluding first-time buyers down by 12.3%. Remortgage searches climbed 12.5%, suggesting that most activity is driven by refinancing rather than new buying.
Month-on-month, residential purchase searches fell 1.4%, remortgage activity remained flat, and total searches dipped 1.7%. Although declines are smaller than earlier in the year, activity levels remain muted compared to long-term norms.
First-time buyer searches were most affected, falling 14.4% year-on-year and 3.3% month-on-month. October searches fell to 297,387 from 365,255 in May – an 18.6% decrease from this year’s peak.
The split by mortgage term suggests borrowers are keeping options open: terms of two years or less account for 51.4% of first-time buyer searches, with three to five years chosen by 36.5% and six to ten years making up 12% of the market.
In the buy-to-let market, searches were down 1.4% year-on-year, with purchases falling 13.6% but remortgage searches rising 6%. The buy-to-let sector remains stable at around 17% of total market activity, which Twenty7tec says underlines its consistent share even as purchase demand cools.
Although demand is subdued, product choice has surged, with a record 28,835 mortgage products available in the final week of October – the highest level ever recorded.
‘This unprecedented choice creates both opportunity and complexity for advisers as they navigate an increasingly competitive market on behalf of clients’, Twenty7tec said.
Nakita Moss, head of lender relationships at Twenty7tec, added:
“October’s figures show a market in pause mode. Buyers are holding off ahead of the budget and waiting for more stability, while lenders are competing harder for business.
“But there is some positivity – the record number of available products is good news for borrowers, though it makes the adviser’s role even more vital. With almost 29,000 products on the market, technology and expert advice are essential to help clients find the right deal quickly and confidently.”
