The mortgage market picked up momentum in September, but new figures from Twenty7tec show that the revival is being driven almost entirely by remortgaging, with first-time buyers continuing to struggle.

Total mortgage searches reached 1,675,984 in September, up 7.6% on the previous month and 1.5% higher than a year earlier. But nearly half of this activity – 48.95% – was focused on remortgaging, compared with 43.37% at the same point in 2024.

RESILIENCE, NOT RECOVERY

Remortgage searches rose to 820,429, a 10.7% increase on August and 14.6% higher year on year. Within that, residential remortgages climbed 15.2% annually and buy-to-let remortgages were up 12.8%.

By contrast, purchases remain muted. Non-first-time buyer residential purchases fell 8.6% compared with last September, while first-time buyer activity slipped 7.6% despite a modest monthly increase of 2.6%.

Their share of the market dropped from 19.24% in August to 18.36% in September.

Buy-to-let tells a similar story. Overall searches rose 4% year on year to 308,434, but purchase searches within that fell by almost 11% to 98,130.

Long-term fixes have also fallen sharply out of favour. Products with terms of six to ten years made up just 12.3% of the market in September, compared with 23.7% a year earlier – the lowest level recorded.

“September’s numbers need to be read carefully,” said Nakita Moss, head of lender at Twenty7tec. “Yes, overall activity is up, but it is being propped up by remortgaging. That is not new confidence – it is people playing safe, making defensive moves to secure their household finances.

“Purchases, and first-time buyer demand in particular, remain weak, and that is a concern for the long-term health of the market.”

Nathan Reilly, commercial director at Twenty7tec, added: “Advisers are now operating in a market where remortgaging is dominant and first-time buyers are under real strain.

“This is where good CRM systems and proactive client engagement become essential. Advisers cannot wait for clients to come to them. They need to be running their books, using data to identify who is approaching the end of their term, and starting conversations early.”

He said advisers must also manage expectations for first-time buyers: “They should be preparing first-time buyers with realistic affordability scenarios and supporting them through a tougher journey to purchase.

“The advisers who use technology to anticipate needs rather than react to them will be the ones who add the most value in this market.”