The mortgage market has been a bit of a rollercoaster this year, with some good news and some bad. But according to the latest figures from Twenty7tec, a leading mortgage adviser tech provider, there are promising signs for first-time buyers looking to get on the property ladder.

Mortgage Searches – Up and Down

Overall, mortgage searches were down in May compared to April, with a dip of 8% for purchase mortgages and a massive 25% fall in remortgages. This is partly due to the fact that May had two bank holidays, plus a Bank of England interest rate decision and the announcement of a General Election. The weather might even have played a part, as many people were looking at the sun instead of the property market!

However, if we look at the bigger picture, things are looking up. Compared to May 2023, purchase mortgage searches were up by 7.16% and remortgages were pretty much steady. And the year so far has been a “hot market” for mortgages, with one million more searches on Twenty7tec’s systems compared to the same period last year.

Buy-to-Let – A Mixed Bag

The buy-to-let market is a bit of a mixed bag. While searches were up compared to last year, they were down on the month. This might be a sign that landlords are thinking twice about buying new properties, maybe because of the cost of living crisis and the uncertainty in the housing market.

First-Time Buyers – A Ray of Hope

Despite the overall downturn in the market, there’s good news for those just starting out. Searches by first-time buyers were only down 2.86% in May compared to April and were actually up 1.85% compared to May 2023. This shows that despite the challenges, young people are still determined to get on the property ladder.

Long-Term Fixed Mortgages

One of the biggest trends in the mortgage market is the increasing popularity of long-term fixed mortgages. While two-year fixed deals are still popular, more people are choosing to lock in their rates for five years or even longer. This is because people want certainty in a time of economic uncertainty.

What Does It All Mean?

So, what does all this mean for the mortgage market? It seems that despite some short-term fluctuations, the market is still healthy. Lenders are confident and there are plenty of mortgages available. First-time buyers are still eager to enter the market, and long-term fixed mortgages are becoming increasingly popular.

While there will always be ups and downs, the future of the mortgage market looks bright!