The UK mortgage market is undergoing a period of sharp contrasts, according to the latest figures from leading adviser tech platform Twenty7tec, which reveal a significant drop in buy-to-let (BTL) activity alongside a surge in demand from self-employed borrowers and first-time buyers.
BTL mortgage searches in April 2025 accounted for just 14.74% of overall market activity – the lowest share recorded since the company began reporting in January 2020.
The downturn was particularly acute in the £150,000 to £250,000 range, where BTL searches plummeted by more than 24%.
RECORD SELF-EMPLOYED APPLICANTS
In stark contrast, the final days of April saw record levels of mortgage searches from self-employed applicants, peaking on the 28th and 29th. First-time buyers also continued to show resilience, making up nearly a quarter of all search activity for the fifth consecutive month.
Searches for shorter-term mortgage products gained traction, with 44.13% of fixed-rate product searches focused on two-year or shorter terms – up from 40.95% in March.
The trend suggests borrowers are increasingly prioritising flexibility as they navigate volatile interest rate expectations and affordability pressures.
Despite the turbulence in BTL, overall adviser activity remained strong. April closed with four of the seven busiest ever days for ESIS (European Standardised Information Sheet) documents issued in the 90%+ loan-to-value bracket. Residential purchase searches also climbed, with two days ranking among the 20 busiest on record.
Product availability remained robust throughout the month, peaking at 25,266 options early in April and ending the month slightly higher overall.
A PICTURE OF CONTRASTS
Nathan Reilly, director at Twenty7tec, said: “April’s mortgage market painted a picture of contrasts. Just last month, buy-to-let searches were among the highest we’ve ever recorded.
“Fast forward to April, and we’re seeing the lowest share of the market for BTL activity since we began tracking – particularly in the £150k–£250k range, where searches fell by more than 24%.
“At the same time, first-time buyer interest remained strong, making up nearly a quarter of all search activity – a trend we’ve now seen for five consecutive months.”
GREATER FLEXIBILITY
And he added: “More widely, we saw signs of borrowers seeking greater flexibility – with growing demand for shorter-term products and average applicant salaries reaching new highs.
“We also saw a sharp rise in searches from self-employed applicants, perhaps another reflection of a market adapting to uncertainty.
“April’s figures show that the market is still very much in motion, with advisers and customers responding in real time to shifts in product availability, affordability, and wider sentiment.
“And as for the BTL market – is this just a blip, or are we seeing the start of a longer-term shift? Either way, we encourage advisers and lenders to keep a close eye on how things unfold in the months ahead.”
