Mortgage searches in the UK have experienced a significant decline, dropping by 15% year-on-year in May 2026, according to data from Twenty7tec. This downturn is notable as it also represents a 7% decrease compared to April’s figures, indicating a cooling trend in the mortgage market.
TL;DR: Mortgage searches fell to approximately 1.59 million in May, impacting first-time buyers and landlords; residential searches are particularly down, signalling a cautious market shift.
What does the mortgage market decline mean?
The 15% year-on-year decline in mortgage searches reflects a broader trend of reduced activity in the housing market. Residential mortgage searches were particularly affected, decreasing by 16% from last year and 7% from April, with first-time buyers seeing a 14% drop in their search activity. This suggests that potential buyers are becoming more hesitant, likely due to economic uncertainties and rising costs.
How are different types of mortgage searches affected?
Residential remortgage searches have also taken a hit, falling by 21% year-on-year to 563,124. Meanwhile, searches for purchasing residential properties dropped to 626,029, an 11% decrease from the previous year. Buy-to-let searches were down by 13% year-on-year, with a 22% decline in searches for buy-to-let purchase mortgages, indicating that landlords are also reassessing their investment strategies amid changing market conditions.
What this means for first-time buyers and landlords
For first-time buyers, the decline in mortgage searches could indicate a more challenging environment for securing financing, as lenders may tighten criteria in response to reduced demand. Landlords may also face increased scrutiny as buy-to-let searches drop, potentially affecting their ability to secure funding for new investments. Both groups should stay informed about current mortgage rates and consider their options carefully.
Frequently asked questions
Why are mortgage searches declining?
The decline in mortgage searches is attributed to economic uncertainties and rising costs, leading to a more cautious approach from potential buyers and investors.
What should I do if I’m looking to buy a home now?
If you’re considering buying a home, it’s essential to stay updated on mortgage rate comparison and evaluate your financial readiness, as the market conditions are shifting.