The mortgage market softened in October as first-time buyer activity and total residential searches slowed, Twenty7tec has found.

The advice tech firm’s latest mortgage report revealed that first-time buyer searches fell by 14.4% year-on-year, and 3.3% month-on-month, to 297,387 searches.

This figure is also an 18.6% decrease from the year’s peak number of searches, which was recorded in May.

Residential searches fell by 3.2% year-on-year, with purchase activity falling sharply by 12.3%, while remortgage searches increased by 12.5%, suggesting that most activity is being driven by refinancing rather than new buying.

This trend was also noticeable in the buy-to-let market, where purchase searches fell by 13.6% but remortgage searches increased by 6%. Twenty7tec said this trend comes as landlords look to prioritise refinancing over portfolio expansion.

However, Twenty7tec found that despite subdued demand, product choice in the mortgage market reached a record high of 28,835 in the last week of October. The firm said that this unprecedented choice creates "both opportunity and complexity" for advisers as they navigate an increasingly competitive market on behalf of clients.

Head of lender relationships at Twenty7tec, Nakita Moss, said: "October’s figures show a market in pause mode. Buyers are holding off ahead of the Budget and waiting for more stability, while lenders are competing harder for business.

"But there is some positivity – the record number of available products is good news for borrowers, though it makes the adviser’s role even more vital. With almost 29,000 products on the market, technology and expert advice are essential to help clients find the right deal quickly and confidently."

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