While purchase demand eased back in August, figures from Twenty7tec show remortgage activity continuing to rise as borrowers weigh up affordability, rates and the potential impact of proposed property tax reforms.
Twenty7tec identified that search volumes totalled 1,558,230 - the lowest since June 2024 - representing a modest 1% dip compared with last year, reflecting the typical seasonal summer slowdown.
First-time buyers were particularly feeling the heat, with searches falling by 10.51% compared to July, suggesting softer demand among those taking their first step onto the housing ladder.
In contrast, remortgage activity is picking up the pace in the opposite direction.
Searches leapt by 15.61% compared to August 2024, extending the trend seen in recent months as more households opt to secure a new deal rather than commit to a purchase. The shadow hanging over buyers concerned about future property tax reforms also remains an issue, prompting many to take pause and reassess their next move wisely.
Record product choice
Lender behaviour painted a different picture. There are now 26,933 products available to advisers and their clients, the highest number on record. August also marked the first time that more than 900 products were added in a single month, highlighting the fierce competition among lenders to attract borrowers.
The type of products borrowers are searching for is changing too. Ten-year fixed deals now account for just 12.41% of searches, the lowest ever share, down from 22.62% in August 2024 and a peak of 36.71% in June 2022.
Nakita Moss, head of product at Twenty7tec, said: “August often brings a dip in activity, but the year-on-year fall in purchases stands out. Borrowers are clearly being pragmatic: remortgaging in greater numbers, leaning towards shorter fixes, and holding back on moving until there is more certainty. At the same time, lenders are stepping up competition, with record levels of product choice. On the surface, activity looks quieter, but underneath there is still a great deal of movement shaping the market.”
