There was a 15% year-on-year decline in mortgage searches conducted on Twenty7tec, indicating caution among borrowers.
The firm’s Mortgage Market Snapshot showed there were 1,590,911 searches on the platform in May, a 7% reduction on the month before.
Residential searches totalled 1,341,508, a 7% drop on April and a 16% decrease on the year before. Within this, purchase searches declined by 5% to 626,029, while first-time buyer searches contracted by 4% to 152,355.
The most severe decline was seen in remortgage activity, falling 9% month-on-month to 563,124. This was also 21% lower than a year ago.
Buy-to-let (BTL) remortgage searches also fell 9% compared to the month before.
Overall, BTL mortgage searches dropped 9% to 249,403, while purchase searches declined 22% year-on-year.
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Mortgage product availability improves
Although search activity softened over the month, there were more mortgage products available in May than in April. Twenty7tec said this was a sign that lenders continued to adjust their product ranges as market conditions changed.
Advisers seemed to be taking on more complex cases in May, as enquiries for joint borrower sole proprietor (JBSP) mortgages were the most common over the month, as well as searches relating to visa applicants, non-UK nationals, adverse credit and self-employed borrowers.
Nathan Reilly, chief customer officer at Twenty7tec, said: “After the heightened levels of activity seen earlier in the year, May’s data suggests the market has entered a more cautious phase.
“One of the most interesting aspects of this month’s report is the continued demand for complex lending criteria. Joint borrower sole proprietor enquiries returned to the top of the rankings, alongside searches relating to visas, foreign nationals, adverse credit and self-employed applicants. These remain some of the most common questions advisers are seeking answers to, reinforcing the increasingly specialist nature of mortgage advice with a human touch.
“May’s figures do not necessarily point to a market in decline, but rather one that is continuing to adjust following the heightened activity seen earlier in the year.”