Twenty7tec's latest data reveals continued strength in remortgaging, while purchase activity remains subdued ahead of new government housing measures.
Residential remortgage searches increased 37% year-on-year in October, despite overall mortgage search activity falling 5% compared with September.
A total of 1,825,082 searches were recorded during October, 12% higher than the same period last year, with residential remortgaging accounting for 820,865 searches. The figures reflect a market increasingly driven by existing homeowners reviewing their mortgage options, rather than new purchases.
The findings follow the latest Bank of England figures, which showed remortgage approvals rising from 34,000 in August to 42,600 in September, while house purchase approvals declined from 54,800 to 53,400. The effective interest rate on newly drawn mortgages also increased to 4.63%, highlighting the changing borrowing environment facing homeowners.
Residential purchase searches reached 592,572, down 4% month-on-month and 1% year-on-year, while first-time buyer searches remained broadly stable at 138,315, increasing 1% annually.
Buy-to-let searches also declined, reaching 273,330, down 7% both monthly and annually. Buy-to-let purchase searches were 25% lower than October 2025, while remortgage activity remained 2% higher year-on-year, reinforcing the contrast between new borrowing and existing mortgage commitments.
Nakita Moss, head of lender at Twenty7tec, commented: “October's figures show a mortgage market that remains active, but not necessarily in the areas we might traditionally expect. Remortgaging continues to drive significant annual growth, with existing homeowners reviewing their options as mortgage pricing and financial circumstances change.
“The contrast with purchase activity is particularly interesting. While the overall market remains ahead of last year, we're seeing a much more measured picture among those looking to buy, which reinforces the importance of understanding where demand is coming from rather than relying on headline figures alone.
“October highlights a market moving at different speeds. Remortgaging remains resilient, purchase activity is more cautious and landlords continue to face their own challenges. As we approach the end of 2026, understanding these differences will be essential for lenders and advisers looking to respond to changing borrower needs.”
