The mortgage market sprung back to life in September after the summer lull, but Twenty7tec’s latest data shows the bounce was far from evenly spread.
In total, mortgage searches rose to 1,675,984 in September, compared with 1,558,230 in August, up overall by 1.51% year on year and 7.56% month on month. On the surface this looks like a market in recovery, yet beneath the headline numbers it is clear that growth is being fuelled almost entirely by remortgaging.
Remortgage searches climbed sharply to 820,429, a double-digit rise of 10.70% in August and up 14.59% compared with September 2024. Nearly half of all activity – 48.95% – was focused on remortgaging, up from 43.37% this time last year. The residential market accounted for 610,022 of these searches, an increase of 15.22% year on year, while buy-to-let remortgages grew by 12.81% over the same period.
In contrast, purchase activity remains subdued. Non-first-time buyer residential purchases totalled 547,859, falling 8.63% compared to a year earlier, despite a monthly lift of 5.94%. First-time buyers saw only a slight monthly improvement of 2.57%, but are down 7.63% year on year, with their share of overall activity slipping from 19.24% in August to 18.36% in September. This underlines the persistent affordability and deposit barriers facing those looking to get onto the housing ladder.
Buy-to-let activity also reflects this split. Total buy-to-let searches reached 308,434, an increase of 4.04% on last year. But while remortgaging is strong in this segment, purchases are sharply down – 98,130 in September, 10.82% lower than in September 2024.
Beyond volumes, borrower behaviour is shifting in telling ways. Long-term fixes are collapsing in popularity, with six-to-ten year products making up just 12.32% of the market. That is the lowest ever recorded, and nearly half the 23.72% seen in September 2024. The fall suggests borrowers are reluctant to lock themselves in at current rates, instead gambling on a more favourable outlook in the next few years.
Nakita Moss, Head of Lender at Twenty7tec, said:
“September’s numbers need to be read carefully. Yes, overall activity is up, but it is being propped up by remortgaging. That is not new confidence – it is people playing safe, making defensive moves to secure their household finances.
“Purchases, and first-time buyer demand in particular, remain weak, and that is a concern for the long-term health of the market. The collapse in long fixes shows how sceptical borrowers are that current rates represent good value. What we are seeing is resilience, not recovery.”
Nathan Reilly, Commercial Director at Twenty7tec, said:
“Advisers are now operating in a market where remortgaging is dominant and first-time buyers are under real strain. This is where good CRM systems and proactive client engagement become essential.
“Advisers cannot wait for clients to come to them. They need to be running their books, using data to identify who is approaching the end of their term, and starting conversations early.
“At the same time, they should be preparing first-time buyers with realistic affordability scenarios and supporting them through a tougher journey to purchase. The advisers who use technology to anticipate needs rather than react to them will be the ones who add the most value in this market.”
