Buy to let mortgage searches fall by a fifth

Mortgage activity cooled sharply in December as the year closed, yet figures suggest the market finished 2025 in a firmer position than earlier in the autumn, according to the latest data from Twenty7tec.

Buy to let searches dropped 23.06% month on month to 189,902 as advisers and borrowers stepped back over the festive period.

However, volumes remained 7.35% higher than December 2024, pointing to continued interest rather than a structural retreat from the sector, the firm says.

The monthly fall mirrors a wider seasonal pause as BTL product choice remained close to recent peaks heading into December.

Mortgage market dips

Across the whole market, total mortgage searches reached 1,088,120, down 22.6% compared with November.

Activity, however, was 10.75% above the same month last year, underlining a more durable level of engagement beneath the surface slowdown.

Residential remortgaging again drove most adviser work as searches totalled 431,990, a 19.05% monthly fall but a 29.31% annual rise.

Purchase demand remained under strain as first-time buyer searches slipped 24.93% from November to 199,393, with year-on-year growth limited to 0.78%.

Excluding first-time buyers, purchase searches fell 27.39% month on month and were 3.36% lower than a year earlier, reflecting affordability pressures and cautious confidence.

Search drop is seasonal

Twenty7tec’s commercial director, Nathan Reilly, said: “What December really underlines is the stop-start nature of the mortgage market we’ve seen throughout 2025.

“Earlier in the year, including over the summer, remortgaging activity consistently proved more resilient than purchase demand, and that pattern has continued into the final months of the year.

“The sharp month-on-month drop in December is seasonal and expected, but when you compare it to November and look at the year-on-year picture, it’s clear that underlying intent hasn’t disappeared.”

He added: “Borrowers are active, but they’re taking longer to move and being far more selective about timing.

“For advisers, this reinforces the importance of staying close to clients over longer decision cycles.”