Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Remortgaging Drives Mortgage Activity Despite Summer Slowdown, Says Twenty7tec
Remortgaging continued to underpin mortgage market activity in August despite a wider seasonal slowdown, according to the latest Mortgage Market Snapshot from Twenty7tec. A total of 1,556,758 mortgage searches were completed during August, a 13% fall from July but a 1% increase compared with August last year.
Remortgage searches show strongest annual growth
Residential mortgage searches followed a similar pattern, falling 13% month on month but remaining 3% higher year on year. Remortgaging recorded the strongest annual growth: Twenty7tec logged 616,150 residential remortgage searches in August, down 12% from July but 11% higher than the same month last year.
The figures add to evidence that remortgaging is becoming an increasingly important component of mortgage market activity. Lending statistics published by the FCA and Bank of England show that remortgages accounted for 31.2% of gross advances to owner-occupiers in the second quarter, up 3.1 percentage points from the previous quarter and the highest share since the first quarter of 2024.
Nakita Moss, head of lender at Twenty7tec, said August was quieter than July but that the monthly fall "isn't the whole story", noting that overall searches remained slightly ahead year on year and residential activity was 3% higher. She said remortgaging was "particularly interesting", with searches 11% higher year on year and the latest lending figures showing an increased share of advances going towards remortgaging.
"For advisers, this means there is still a significant population of existing borrowers needing to understand what their next mortgage looks like," she said, adding that in a market where rates and products can change quickly, those conversations can be just as important as purchase market activity.
Criteria searches point to borrower support
The wider lending data also suggests lenders are continuing to find ways to support borrowers with smaller deposits. Joint Borrower Sole Proprietor remained the most searched-for criteria area on Twenty7tec during August, followed by visa applicants and non-UK foreign nationals. Searches relating to satisfied defaults and the maximum age at the end of the mortgage term also featured among the most common criteria enquiries.
Buy-to-let remained the clearest area of weakness in Twenty7tec's August data.
What this means for letting agents and inventory clerks
While the data is drawn from mortgage search activity, the strength of remortgaging and the continued weakness in buy-to-let are relevant signals for the rental sector. Landlords remortgaging in a fast-changing rate environment may review their portfolio positions, and the reported softness in buy-to-let activity is worth monitoring for its potential impact on rental stock.
Source: Mortgage Strategy