The mortgage market softened in October, with a continued drop in first-time buyer activity and total residential searches also edging lower, Twenty7tec reveals.

Despite subdued demand, product choice has surged to the highest level recorded, with a record 28,835 mortgage products available in the final week of October.

The slowdown reflects both affordability pressures and a pause for clarity ahead of the upcoming Autumn Budget.

Total residential searches were 3.2% lower year-on-year, with purchase activity sharply down and remortgage volumes continuing to dominate.

Residential purchase searches (excluding first-time buyers) fell 12.3% compared to last year, while remortgage searches climbed 12.5%. Twenty7tec suggests that most activity is driven by refinancing rather than new buying.

But first-time buyers remain the most affected group as searches fell 14.4% year-on-year and 3.3% month-on-month, dropping to 297,387 in October from 365,255 in May – an 18.6% decrease from this year’s peak.

Data also found that two-year and under terms account for 51.4% of first-time buyer searches, three-to-five-year terms for 36.5%, and six-to-10-year terms for 12%.

Meanwhile, total BTL searches were down 1.4% year-on-year, with purchases falling 13.6% but remortgage searches rising 6% as landlords prioritise refinancing over portfolio expansion.

The BTL sector remains stable at around 17% of total market activity, underlining its consistent share even as purchase demand cools.

Residential purchase searches fell 1.4%, remortgage activity remained flat, and total searches dipped 1.7%.

Product availability reached a new record of 28,835 on 27 October, up slightly from 28,811 the week before.

Twenty7tec head of lender relationships Nakita Moss says: “October’s figures show a market in pause mode. Buyers are holding off ahead of the Budget and waiting for more stability, while lenders are competing harder for business.”

“But there is some positivity – the record number of available products is good news for borrowers, though it makes the adviser’s role even more vital. With almost 29,000 products on the market, technology and expert advice are essential to help clients find the right deal quickly and confidently.”

Earlier today, the Council for Licensed Conveyancers’ (CLC) latest confidence tracker revealed that confidence in the housing market has slumped to its lowest level this year amid uncertainty over the impending Autumn Budget.

It found three-quarters of property professionals say people are putting off moving house until the Chancellor’s plans are known.