Mortgage market activity slowed “sharply” in December, new analysis by Twenty7tec has indicated.

The mortgage tech firm suggested that its underlying data points to a stronger overall position than seen earlier in the autumn, however.

According to Twenty7tec’s latest Market Snapshot report, total mortgage searches reached 1.09 million in December down 22.6% month-on-month compared with November, as adviser and consumer activity tailed off over the festive period.

Despite the monthly fall, search volumes were 10.8% higher than December last year, which Twenty7tec said highlights “a more resilient level of engagement” across the market.

Residential remortgaging remained the standout area of activity with searches totalling 432,000, down 19.1% month-on-month but up 29.3% year-on-year – the strongest annual growth across all residential categories.

By comparison, Twenty7tec said that purchase activity continued to face pressure into the end of the year. First-time buyer purchase searches fell to 199,300, a 24.9% drop compared with November, with year-on-year growth remaining marginal at 0.8%.

Commercial director at Twenty7tec, Nathan Reilly, said that December had underlined the “stop-start nature” of the mortgage market throughout 2025.

“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,” Reilly commented.

“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.”

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