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The UK mortgage market showed signs of life in September, bouncing back from the traditional summer slowdown – but the latest data from Twenty7tec reveals the recovery is far from balanced, with remortgaging dominating activity.
Total mortgage searches climbed to 1,675,984 in September, up 7.56% on August and 1.51% compared to the same month last year. While this headline growth suggests renewed momentum, a closer look reveals that nearly all of it stems from remortgage activity.
Remortgage searches surged to 820,429 – up 10.7% month-on-month and 14.59% year-on-year – now accounting for almost half (48.95%) of all mortgage searches. That’s a notable jump from 43.37% a year ago, as more borrowers opt to refinance amid persistent rate uncertainty.
The residential remortgage market saw 610,022 searches in September, marking a 15.22% annual rise, while buy-to-let remortgage searches grew by 12.81%.
In contrast, purchase demand remains subdued. Residential purchases (excluding first-time buyers) reached 547,859 searches — down 8.63% year-on-year, despite a modest monthly gain of 5.94%. First-time buyer activity also remained soft, edging up 2.57% from August but still down 7.63% on the year. Their share of total mortgage searches also slipped from 19.24% to 18.36% month-on-month, highlighting the ongoing challenges around affordability and deposit requirements.
Buy-to-let figures reinforce this divide. While total searches in the sector rose 4.04% year-on-year to 308,434, purchase activity fell sharply. Only 98,130 searches were for buy-to-let purchases in September — down 10.82% compared to a year earlier.
Borrowers are also shifting how they approach mortgage products. Demand for long-term fixed-rate deals — once popular for stability — is waning rapidly. Just 12.32% of all searches in September were for six-to-ten-year fixed products, the lowest share on record and nearly half the 23.72% seen in September 2024. The drop suggests many borrowers are hesitant to lock in current rates and are instead holding out for better conditions in the coming 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, commented: “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.”
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