But year-end data indicates a steadier outlook for 2026
Mortgage market activity fell back in December, with advisers and borrowers largely pausing decisions over the Christmas period, but annual comparisons indicate a firmer backdrop than earlier in the autumn.
According to Twenty7tec’s latest Market Snapshot, total mortgage searches reached 1.09 million in December, a decline of 22.6% compared with November as seasonal factors curbed activity.
On an annual basis, however, searches were 10.75% higher than in December last year, pointing to more consistent engagement from borrowers and intermediaries over 2025.
Residential remortgage cases again led the market. Remortgage searches stood at 431,990 in December, down 19.05% month on month, but 29.31% higher than a year earlier – the strongest annual uplift among residential segments. This follows a busier November and underlines remortgaging’s continuing role as the main driver of broker workloads as customers review existing loans against a shifting rate backdrop.
Purchase activity remained subdued into the year end. First-time buyer purchase searches fell to 199,393, a drop of 24.93% on November. Year-on-year growth in this segment was modest at 0.78%, suggesting only limited improvement in conditions for new entrants to the market.
Home-mover purchase searches excluding first-time buyers were also weaker. These fell 27.39% compared with November and were 3.36% lower than in December last year. The figures point to ongoing affordability pressures and subdued confidence, with households reluctant or unable to commit to larger borrowing in the face of elevated living costs and tighter budget constraints.
Buy-to-let searches followed a similar pattern of seasonal decline. Total buy-to-let activity dropped 23.06% month on month to 189,902, although volumes remained 7.35% above December last year. The lender technology firm said the latest monthly fall was consistent with the usual year-end pause rather than signalling a fundamental shift in landlord appetite.
Across the wider market, product choice has continued to rebuild. The total number of mortgage products available remained close to recent highs going into December, giving intermediaries a broader selection of options to consider even as short-term demand eased.
Commenting on the figures, Nathan Reilly, commercial director at Twenty7tec, said the latest data illustrated how uneven market momentum has been over the year.
“What December really underlines is the stop-start nature of the mortgage market we’ve seen throughout 2025,” said Nathan Reilly (pictured right), commercial director at Twenty7tec. “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.
“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.”
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