There were fewer searches and fewer products available across the Twenty7Tec mortgage platform in June, with the fintech firm saying that “advisers and lenders both need to think about all the forces driving that activity”.

The company says it hosted 1,354,788 product searches last month, a 10% fall on May. It adds that there were 1,200 fewer mortgage products on its platform at the end of June, a 6.8% fall, which represents the third monthly decline in a row.

It says the home loans market is now running at 81.6% of pre-pandemic product volumes.

The report comes after the Bank of England has raised interest rates five times in the row since December to 1.25%, and inflation hit 9.1% in May, a 40-year high. Many economists forecast the UK will fall into recession over the next 12 months.

The platform says that searches for shared ownership offers were down by 15.6% in June, those looking for homes over £1m fell by 14.7% and standard residential searches were 10.4% lower.

First-time buyer searches were 19% of all enquires last month, which remains at around their average for this year, says the platform.

However, the study notes that green mortgages have quadrupled in the past eight months and “are proving increasingly popular for buy-to-let mortgages – green BTLs now trend towards one-third of the total green mortgage market”.

The move follows government proposals to require all new tenancies to have an energy performance certificate of at least C by 2025, and for all existing tenancies to hit this level by 2028, in line with the UK’s target to reach net zero carbon emissions by 2050.

Although, the platform points out that green mortgage searches currently account for 0.06% of its monthly mortgage searches.

Twenty7Tec founder and chief executive James Tucker says: “I don’t think that we can ignore the drop in total mortgage products available as a signal to the market.

“It’s now been three months on the trot of fewer products available and advisers and lenders both need to think about all the forces driving that activity.

“In better news, we appear to finally have lift-off in the green mortgages sector where customers and particularly BTL mortgages are seeking a better rate as a result of their improved energy performance certificate ratings on their properties.”