BTL borrowing search activity, across both purchases and remortgages, was down by over 30% in December.
In an analysis of search data on its platform, which is used by over 17,000 advisers, Twenty7tec found BTL search activity was down by 35% and 35.5% month-on-month in December across purchases and remortgages, respectively.
The picture was less negative, however, on a year-on-year comparison basis.
Between December 2023 and December 2024, BTL purchase mortgage searches were up 0.3%.
Over the same period, BTL remortgage searches were down by 5.95%.
In December 2024, the average loan amount required, across both purchase and remortgage activity of landlords, was broadly the same from the month before at £192,224 and £205,725, respectively.
As ever, the London BTL market differed to the wider nation.
Within the capital, December saw BTL mortgage searches contract by 36.5% which was more than the 35.3% recorded nationwide.
The average loan required grew in both markets during the month, but more so in London, by 4.2% to £330,659.
On a nationwide basis, this only crept up by 0.5% to an average of £200,796.
Overall, across all mortgage search activity, borrowers are seeking longer-term fixed deals.
Twenty7tec found that in December 2024, two-year fixed mortgages accounted for 41.89% of fixed-product searches, down from 49.65% the year before.
In contrast, five to 10-year fixed mortgages accounted for 22.64%, compared to 18.4% in December 2023.
According to Nathan Reilly, director at Twenty7tec, this slowdown in activity was to be expected, despite the Bank of England’s rate cut before Christmas.
“There’s been talk in the market of the biggest ever Boxing Day bounce, when people begin to look at new properties, which will result in busier times for advisers over coming weeks,” said Nathan, who gave a bullish outlook for January.
“January is also likely to be busy — especially in the second half — with self-employed individuals looking for new mortgages as their tax bills are due January 31st and financial clarity means that more of them make decisions at this time of year about buying, remortgaging or moving home,” he added.
“[Last year] was the busiest ever year on record for self-employed people looking for mortgages on our systems, 7.47% on the prior year.”
