The number of mortgage searches by brokers on behalf of first-time buyers in July was almost 10% lower than in June at 149,292 down from 165,565, according to figures from Twenty7Tec.

The data show that total searches dipped by 3.7% from 1.252m in June to 1.206m in July as the stamp duty rush began to ease.

As a share of all searches excluding product transfers, purchases dropped from 65.06% in June, when buyers were trying to beat the deadline for the first phase of the stamp duty holiday ending, to 63.34% in July.

Consequently, remortgages as a share of all searches increased from 34.94% to 36.36%.

The share of all mortgage searches relating to first-time buyers slipped from 20.32% to 19.45%.

Total product numbers increased by 7.2% to 13,974 in the month to July.

Twenty7Tec head of lender relationships Nathan Reilly says: “We are rapidly closing in on 14,000 mortgage products available in the market. “That’s still at only 70% of products available in February and March 2020, but it’s a huge leap forward from the lows of April and May 2020, when under 10,000 products were on the market. 

“It’s a sign of confidence in the market.

“I think that we’ll see more product innovation over the coming months. “Until just recently, lenders were predominantly focused on steadying the ship and now they are turning their minds to differentiation and innovation, particularly when rates are so competitive. 

“Among other lender innovations we are seeing, one trend is the introduction of more eco mortgages and it’s likely these will only increase in popularity over the coming months.”

Reilly adds: “There have been some positive movements from specialist lenders in recent weeks, with the introduction of more high-LTV mortgages and the general expansion of product ranges, which is a really encouraging sign for the entire market. 

“This feeling of confidence has also been increased by the introduction of some sub 1% mortgages that have been launched in recent times.

“There seem to be fewer nerves around the state of the employment market – although the end of October will see two million people move off furlough, so it’s possible that that will affect things a little.

“I think it’s fair to assume that lenders have been busy adapting their underwriting to address the changed market conditions. “Performance-based roles like airlines pilots (hours flown) and landlords (pub revenues) have seen their livelihoods affected by the downturn and their ability to get a mortgage may well have changed as a result.”

He says that some borrowers’ affordability will have improved because of the transition to home-working reducing their commuting costs.

He also sees resilience in the buy-to-let market:

“Lots of landlords are reviewing their portfolios at the moment and considering the benefits of the stamp duty tapering and competitive rates that are on offer. 

“It’s likely the buy-to-let market will remain strong from both a purchase and remortgage perspective, which presents a big opportunity to intermediaries.”