The mortgage market lost momentum in October as buyers adopted a wait-and-see approach ahead of the Autumn Budget, according to the latest data from Twenty7tec.
The figures show first-time buyer activity continuing to fall, while overall residential searches also edged lower. Yet, in contrast to the drop in demand, product choice has reached a record high, with 28,835 mortgage products available in the final week of October – the highest number ever recorded.
The slowdown reflects a mix of affordability pressures and uncertainty around forthcoming fiscal measures. Total residential searches were 3.2% lower than a year ago, with purchases sharply down and remortgage volumes continuing to dominate.
PURCHASE VS REMORTGAGE SEARCHES
Residential purchase searches, excluding first-time buyers, fell 12.3% year-on-year, while remortgage searches rose 12.5%. The data suggests that refinancing remains the main driver of market activity as borrowers seek to secure stability amid fluctuating rates.
First-time buyers remain the hardest hit. Their searches were down 14.4% compared with last October and 3.3% month-on-month, falling to 297,387 in October from 365,255 in May – an 18.6% drop from this year’s peak.
Borrowers are spreading their bets on term length, with 51.4% of first-time buyer searches focused on deals of two years or less, 36.5% on three-to-five-year terms, and 12% on six-to-10-year fixes, pointing to ongoing caution over future rate movements.
The buy-to-let market shows a similar pattern. Overall searches fell 1.4% year-on-year, with purchases down 13.6% but remortgage searches up 6% as landlords prioritise refinancing over portfolio expansion. The sector continues to represent around 17% of total market activity, suggesting a steady if subdued performance.
On a monthly basis, activity was broadly stable. Residential purchase searches slipped 1.4%, remortgage activity was unchanged, and total searches dipped 1.7%. While the rate of decline has slowed compared with earlier in the year, volumes remain below long-term averages.
PRODUCT OFFERINGS
At the same time, lenders have widened their product ranges, intensifying competition even as demand cools. Product availability reached its highest point on 27 October, marginally up from 28,811 the week before.
Nakita Moss, head of lender relationships at Twenty7tec, said: “October’s figures show a market in pause mode. Buyers are holding off ahead of the Budget and waiting for more stability, while lenders are competing harder for business.
“But there is some positivity – the record number of available products is good news for borrowers, though it makes the adviser’s role even more vital. With almost 29,000 products on the market, technology and expert advice are essential to help clients find the right deal quickly and confidently.”
