Remortgaging continued to support mortgage market activity in August despite a broader seasonal slowdown, according to the latest mortgage market snapshot from Twenty7tec.
A total of 1,556,758 mortgage searches were completed during August, which represents a 13% decrease from July but a 1% increase compared to August of last year.
Residential mortgage searches followed a similar pattern, falling 13% month over month, but remaining 3% higher year over year.
Refinancing recorded the strongest annual growth. Twenty7tec recorded 616,150 residential remortgage searches in August, down 12% from July but 11% higher than the same month last year.
These figures add to the evidence that remortgaging is becoming an increasingly important component of mortgage market activity.
Mortgage lending statistics published by the Financial Conduct Authority (FCA) and the Bank of England this week show that remortgaging made up 31.2% of total advances to owners in the second quarter. This represents an increase of 3.1 percentage points from the previous quarter and represents the highest share since the first quarter of 2024.
“August was undoubtedly quieter than July, but the monthly decline is not the whole story,” said Nakita Moss, head of lending at Twenty7tec. “Mortgage searches overall remained slightly ahead year-on-year, and residential activity was 3% higher.”
“Remortgaging is particularly interesting. Our searches were 11% higher year-on-year, and the latest lending figures also show that the share of advances directed towards remortgaging has increased.
“For advisers, this means that there are still a large number of existing borrowers who need to understand what their next mortgage looks like. In a market where prices and products can change quickly, these conversations can be just as important as the activity coming through the buyout market.”
Broader lending data also suggests that lenders are continuing to find ways to support borrowers with smaller deposits.
Sole landlord co-borrowers remained the most searched criteria area on Twenty7tec during August, followed by visa applicants and non-UK foreign nationals.
Searches related to default and maximum age at the end of a mortgage term also appeared among the most popular criteria queries.
Buy-to-let remained the most visible area of weakness in Twenty7tec’s August data.
