Remortgage searches jump 40% as borrowers return after summer

Remortgage activity drove a sharp rise in mortgage searches during September, with Twenty7tec recording more than 1.9 million searches across the market.

The mortgage technology provider recorded 1,912,458 searches during the month, 23% more than in August and 15% higher than in September last year.

Residential activity increased by 22% month on month and 19% year on year, with borrowers reviewing existing mortgage deals accounting for much of the increase.

Residential remortgage searches reached 860,951, representing a 40% rise from August and a 44% increase compared with the same month in 2025.

REMORTGAGING DRIVES ACTIVITY

The increase came during a period of renewed uncertainty over mortgage pricing. Bank Rate was held at 3.75% in September, although three members of the Bank of England’s Monetary Policy Committee voted for an increase.

Twenty7tec said major lenders subsequently increased fixed mortgage rates during the month, with some pricing rising by as much as 0.3 percentage points.

Bank of England figures published at the end of September also showed that the effective interest rate on newly drawn mortgages increased from 4.45% in July to 4.60% in August. The rate on the outstanding stock of mortgages rose to 4.00%.

Nathan Reilly (pictured), chief customer officer at Twenty7tec, said: “Remortgaging is doing a huge amount of the work. Searches increased 40% in a month and are 44% higher than this time last year.

“When we see growth on that scale, it tells us that existing homeowners reviewing their borrowing are becoming an increasingly important part of adviser workloads.”

Previous market analysis has suggested that about 700,000 further households could need to refinance before the end of the year, following approximately one million borrowers whose fixed deals had already ended since February.

PURCHASE MARKET RECOVERY REMAINS MODEST

Purchase activity also improved after the summer, although the annual comparison was considerably weaker than for remortgaging.

Residential purchase searches rose by 8% from August to 617,709, leaving them just 1% higher year on year. First-time buyer searches increased by 3% month on month to 138,791 but remained 4% below their September 2025 level.

The figures come against a subdued wider housing market. Seasonally adjusted residential transactions were 2% lower year on year in August, according to HMRC, while Bank of England figures showed house purchase approvals falling to 54,900, their lowest level since 2023.

BUY-TO-LET REMORTGAGING OUTPERFORMS PURCHASES

Buy-to-let searches also rebounded in September, increasing by 27% from August to 295,007. Buy-to-let remortgage searches were up 34% month on month.

However, overall buy-to-let search activity remained 4% below September last year, while purchase searches were down 21% year on year. In contrast, buy-to-let remortgage searches were 4% higher than a year earlier.