The mortgage market presented a "tale of two halves" in July, Twenty7tec has stated, as remortgage activity grew by 7% month-on-month, while purchase and buy-to-let searches slowed.

The firm’s latest Mortgage Market Snapshot revealed that remortgage searches increased by 5% year-on-year last month, reaching 700,628, with many borrowers focusing more on what to do when an existing deal expires, rather than when to act.

However, total mortgage searches increased by 1% month-on-month in July to 1.79 million, which is broadly unchanged year-on-year. Twenty7tec said rather than signalling a significant rise or fall in demand, the figures point to a market where different borrower groups are moving at “noticeably different speeds”.

It added that this figure shows borrowers are navigating affordability and the usual summer slowdown.

The purchase market remains more cautious, with residential purchase searches falling by 3 month-on-month, while first-time buyer searches dropped by 4%.

Despite this, first-time buyer activity remained slightly ahead of July 2025, which Twenty7tec said suggests demand has not disappeared, despite continued affordability issues.

The buy-to-let market has also represented another challenge, as search volumes remained slightly below last year, reflecting a “landlord market that continues to assess borrowing costs, taxation, regulation and the longer-term case for property investment”.

Head of lending at Twenty7tec, Nakita Moss, stated: "July’s data suggests the mortgage market remains on a steady footing. Total search activity edged up by 1% compared with June and remained broadly in line with the same month last year, showing advisers and borrowers continue to engage despite ongoing economic uncertainty.

"Remortgaging was the standout story this month, with searches up 7% month on month and 5% year on year. As more borrowers reach the end of existing fixed-rate deals and lender competition remains strong, advisers have an important role to play in helping clients navigate an increasingly competitive market."

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