The UK mortgage market experienced a significant decline in search activity in May 2026, with overall mortgage searches dropping by 15% year on year, according to data from Twenty7tec. This downturn reflects a cautious shift in market sentiment following a period of heightened activity earlier in the year.
TL;DR: Mortgage searches fell by 15% year on year in May 2026, impacting first-time buyers and landlords; residential remortgage searches decreased by 21% and buy-to-let purchase searches dropped by 22%.
What caused the drop in mortgage market searches?
The reduction in mortgage searches can be attributed to a combination of factors, including rising interest rates and economic uncertainty. As potential borrowers become more cautious, many are opting to delay their mortgage applications or reconsider their financial commitments. The data shows that residential searches were down 16% compared to last year, and 7% lower than April’s figures.
How are first-time buyers affected in the mortgage market?
First-time buyers are particularly feeling the impact, with searches for residential properties falling by 11% year on year to 626,029. Within this category, first-time buyer searches decreased by 14% to 152,355. This trend suggests that many first-time buyers may be struggling to enter the market amid rising costs and uncertainty.
What does this mean for landlords in the mortgage market?
Landlords are also facing challenges, as buy-to-let searches dropped by 13% year on year. Notably, searches for buy-to-let purchase mortgages fell by 22%, indicating a significant slowdown in investment activity. As the market adjusts, landlords may need to reassess their strategies, particularly in light of the increased caution among potential buyers.
What should borrowers and brokers watch for next in the mortgage market?
Despite the decline in search activity, mortgage product availability increased in May after a dip in April. Borrowers and brokers should keep an eye on how lenders respond to the current market conditions and whether this trend of increased product availability continues. Additionally, monitoring interest rates and economic indicators will be important for making informed decisions moving forward. For those interested, you can check current mortgage rates to stay updated.
Frequently asked questions
Why are mortgage searches declining?
Mortgage searches are declining due to rising interest rates and economic uncertainty, leading borrowers to adopt a more cautious approach.
How does this impact first-time buyers?
First-time buyers are experiencing a significant decrease in search activity, which may hinder their ability to enter the property market amid rising costs.