Mortgage activity eased sharply in December as the year-end lull set in, but annual comparisons point to a more resilient market backdrop than earlier in the autumn.
Mortgage searches fell markedly in December, reflecting the customary seasonal slowdown, according to the latest Twenty7tec Market Snapshot report. Total searches reached 1,088,120, a fall of 22.6% compared with November as adviser and consumer activity tailed off over the festive period.
Despite the month-on-month decline, activity remained stronger than a year earlier. Search volumes were 10.75% higher than in December last year, suggesting engagement across the market has been more robust than during previous periods of uncertainty.
Residential remortgaging continued to dominate adviser activity. Searches totalled 431,990, down 19.05% month on month but up 29.31% year on year, representing the strongest annual growth across all residential segments. The figures underline remortgaging’s ongoing role as borrowers reassess existing deals amid a shifting interest rate environment.
FIRST-TIME BUYERS
Purchase activity, by contrast, remained under pressure as the year drew to a close. First-time buyer purchase searches fell to 199,393, a drop of 24.93% compared with November, while year-on-year growth was marginal at 0.78%.
Excluding first-time buyers, total purchase searches declined 27.39% month on month and were down 3.36% compared with December last year. The sustained weakness points to continued affordability challenges and cautious buyer sentiment, with high living costs and broader economic pressures weighing on households’ willingness to commit.
Buy-to-let activity followed a similar seasonal pattern. Total buy-to-let searches fell 23.06% month on month to 189,902, although volumes remained 7.35% higher than a year earlier. The decline compared with November was attributed to the year-end slowdown rather than any fundamental shift in investor appetite.
Product availability remained supportive, with the number of mortgage products close to recent highs heading into December, giving advisers a wide choice of options despite softer short-term demand.
STOP-START MARKET
Nathan Reilly, commercial director at Twenty7tec, said: “What December really underlines is the stop-start nature of the mortgage market we’ve seen throughout 2025. Earlier in the year, including over the summer, remortgaging activity consistently proved more resilient than purchase demand, and that pattern has continued into the final months of the year.
“The sharp month-on-month drop in December is seasonal and expected, but when you compare it to November and look at the year-on-year picture, it’s clear that underlying intent hasn’t disappeared. Borrowers are active, but they’re taking longer to move and being far more selective about timing.
“This reinforces the importance of staying close to clients over longer decision cycles.”
“For advisers, this reinforces the importance of staying close to clients over longer decision cycles. The role of technology and real-time data becomes even more critical in these conditions, helping advisers respond quickly as intent turns into action rather than relying on short bursts of activity.”
The December data follows a more active November and highlights the uneven rhythm of the mortgage market through 2025. While month-on-month figures point to a clear seasonal pause, the year-on-year uplift across several areas suggests a steadier platform as the market moves into 2026.
