Market slows ahead of budget but product selection hits record in October: Twenty7tec – Mortgage strategy
Twenty7tec revealed the mortgage market softened in October, with first-home buyer activity continuing to fall and total residential searches also falling slightly.
Despite low demand, product choice has soared to its highest level on record, with a record 28,835 mortgage products on offer in the last week of October.
The slowdown reflects both affordability pressures and a pause in clarification ahead of the upcoming autumn budget.
Total residential searches fell 3.2% year-on-year, purchasing activity dropped significantly, and remortgage volume continued to dominate.
Home purchase searches (excluding first-time buyers) are down 12.3% compared to last year, while remortgage searches are up 12.5%. Twenty7tec said most activity was driven by refinancing rather than new purchases.
However, first-time homebuyers are still the most affected group, with search volume falling 14.4% year-on-year and 3.3% month-on-month, from 365,255 in May to 297,387 in October, down 18.6% from this year’s peak.
The data also found that terms of two years and below accounted for 51.4% of first-time buyer searches, terms of three to five years accounted for 36.5%, and terms of six to ten years accounted for 12%.
Meanwhile, total BTL searches fell 1.4% year-on-year, with purchases down 13.6%, but remortgage searches rose 6% as landlords prioritized refinancing over portfolio expansion.
The BTL sector remains stable at around 17% of total market activity, highlighting that its share remains stable even as buying demand cools.
Home purchase searches fell 1.4%, remortgage activity remained stable, and total searches fell 1.7%.
On October 27, product supply hit a new record of 28,835 units, slightly higher than the previous week’s 28,811 units.
Nakita Moss, director of lender relations at Twenty7tec, said: “October’s figures show the market is in pause mode. Buyers are waiting on the sidelines ahead of the Budget, waiting for more stability, while lenders are competing more fiercely for business.”
“But there are some positives – the record number of products available is great news for borrowers, although it makes the role of advisers even more important. With almost 29,000 products on the market, technology and expert advice are vital to helping customers find the right deal quickly and confidently.”
Earlier today, the latest Confidence Tracker report from the Licensed Conveyancers Council (CLC) revealed that confidence in the property market has fallen to its lowest level this year amid uncertainty over the upcoming autumn budget.
Three quarters of property professionals said people would delay moving until the chancellor’s plans are announced, the research found.
