The UK mortgage market showed signs of shifting sentiment in March, according to the latest figures from adviser tech platform Twenty7tec, with remortgage activity climbing strongly month-on-month while interest in short-term fixed products continued to wane.
Compared with February 2025, overall remortgage searches rose by 13.8%, with residential remortgage enquiries leading the charge, up 15.43%. Buy-to-let remortgage searches also saw a double-digit rise of 12.97%.
Meanwhile, purchase activity cooled slightly, down 2.4% on the month. First-time buyer interest also declined, dipping 2.25% compared with February. However, compared with the same period in 2024, first-time buyer searches were up 10.46%, suggesting the cohort remains engaged despite economic uncertainty.
Residential purchase mortgage searches rose 3.93% year-on-year, in contrast to a 12.25% annual decline in buy-to-let purchase searches.
MIXED PICTURE
Nathan Reilly, director at Twenty7tec, said: “March’s mortgage market certainly was a mixed picture, with remortgage activity seeing a noticeable uptick of 13.8% overall compared to February, likely due to more customers looking to refinance amid ongoing speculation around rate cuts later in the year.
“On the purchase side, searches – including those from first-time buyers – dipped slightly by 2.4%, but we’re still seeing encouraging growth compared to this time last year, with first-time buyer search volumes over 10% higher than in March 2024.”
Shifts in product preference also pointed to changing borrower behaviour. Two-year fixed rate products accounted for just 40.95% of all fixed product searches in March 2025, down from 51.51% a year earlier. In contrast, demand for three- to five-year fixes rose significantly, accounting for 36.33% of fixed product searches, up from 28.41%. The share of five- to ten-year fixed products also increased modestly to 22.72%.
LOOKING FOR BALANCE
Reilly said: “It’s also interesting to note the shift in fixed-term product preferences… Could this be indicating that borrowers are looking for a balance between flexibility and medium-term certainty?”
In addition to search trends, adviser engagement with Twenty7tec’s tech tools remains robust. The company reported a 14% year-on-year rise in APPLY submissions and a 3% increase in mortgage illustrations. Notably, affordability tool usage reached new heights, with a 75% annual rise in searches.
“We’re also continuing to see strong adviser engagement with our affordability tools, and APPLY submissions remain strong – a sign that advisers are staying active and responsive in what remains an ever-changing market,” Reilly added.
