New data from mortgage product platform Twenty7tec shows a slowdown in mortgage searches over the traditionally quiet August period, with the total number falling 13.95% compared to July.
The decrease took overall search activity to its lowest rate since June 2024, representing a 1% dip compared to August last year. Demand from first time buyers experienced the most significant decrease, down 10.51% from July and 10.52% year-on-year.
Interest in remortgaging also fell significantly compared to July, down 16.55%. However, the numbers show an increase of 15.61% compared to the same period last year. The annual rise in remortgaging extends a trend seen in recent months, Twenty7tec said, as more households opt to secure new deals instead of committing to new purchases.
‘The shadow hanging over buyers concerned about future property tax reforms also remains an issue, prompting many to take pause and reassess their next move wisely’, the company added.
Despite the slowdown, borrowers have more choice than ever when it comes to products. There are currently 26,933 products available to mortgage advisers and their clients – the highest number on record. August also marked the first time that more than 900 products were added in a single month, which Twenty7tec attributes to strong competition amongst lenders.
Of the products on offer, 10-year fixed deals account for their lowest ever market share at just 12.41% of searches, down from 22.62% last year and a peak of 36.71% in June 2022. ‘Instead, shorter-term fixes are proving more popular, with many borrowers prioritising flexibility in a shifting rate environment’, Twenty7tec said.
Buy-to-let trends follow a similar pattern, with both new purchases and refinancing falling since July (12.36% and 16.55% respectively).
Nakita Moss, head of product at Twenty7tec, said of the figures:
“August often brings a dip in activity, but the year-on-year fall in purchases stands out. Borrowers are clearly being pragmatic: remortgaging in greater numbers, leaning towards shorter fixes, and holding back on moving until there is more certainty. At the same time, lenders are stepping up competition, with record levels of product choice. On the surface, activity looks quieter, but underneath there is still a great deal of movement shaping the market.”
