The mortgage market softened in October, with Twenty7tech data showing a continued drop in first-time buyer activity and total residential searches edging lower. 

Yet despite subdued demand, product choice has surged, with a record 28,835 mortgage products available in the final week of October – the highest level ever recorded.

The slowdown reflects both affordability pressures and a pause for clarity ahead of the upcoming Autumn Budget.

Total residential searches were 3.2% lower year-on-year, with purchase activity sharply down and remortgage volumes continuing to dominate. 

Residential purchase searches (excluding first-time buyers) fell 12.3% compared to last year, while remortgage searches climbed 12.5%, suggesting that most activity is driven by refinancing rather than new buying.

First-time buyers remain the most affected group. Their searches fell 14.4% year-on-year and 3.3% month-on-month, dropping to 297,387 in October from 365,255 in May – an 18.6% decrease from this year’s peak. The split by mortgage term shows borrowers are keeping options open: two-year and under terms account for 51.4% of first-time buyer searches, three-to-five-year terms for 36.5%, and six-to-ten-year terms for 12%, reflecting a continued preference for shorter fixes amid uncertainty about future rate cuts.

The buy-to-let market mirrors the wider pattern. Total BTL searches were down 1.4% year-on-year, with purchases falling 13.6% but remortgage searches rising 6% as landlords prioritise refinancing over portfolio expansion. 

The buy-to-let sector remains stable at around 17% of total market activity, underlining its consistent share even as purchase demand cools.

Month-on-month, the market was steadier but still subdued. Residential purchase searches fell 1.4%, remortgage activity remained flat, and total searches dipped 1.7%. Although declines are smaller than earlier in the year, activity levels remain muted compared to long-term norms.

At the same time, lenders have been expanding their offerings. Product availability reached a new record of 28,835 on 27 October, up slightly from 28,811 the week before. 

This unprecedented choice creates both opportunity and complexity for advisers as they navigate an increasingly competitive market on behalf of clients.