Remortgage market sees uptick in March as purchase activity dips: Twenty7tec

Residential and buy-to-let purchase activity dipped in March, but remortgage searches saw a noticeable uptick, according to the latest figures from Twenty7tec.

Compared to the previous month, purchase mortgage searches were down 2.4% but remortgage searches rose by 13.8% 

Split by product type, residential purchase searches fell by 2.23% but remortgage searches were up 15.43%.

In the buy-to-let market, purchase searches fell by 3.43% and remortgage searches rose 12.97%.

However, when comparing the figures to March 2025 the picture reverses, as purchase searches are up 2.34% and remortgage searches are still down by 5.48%.

The data also shows a shift in fixed-term product preferences. Two-year fixed mortgages accounted for 40.95% of all fixed product searches compared to 51.51% in March 2024.

Three to five-year fixed mortgages accounted for 36.33% of all searches, compared to 28.41% in March 2024, while five to ten-year fixed mortgages now account for 22.72% of searches, compared to 20.08% last year.

In addition, Twenty7tec has seen significant growth in certain areas, particularly in mortgage submissions and affordability searches. APPLY submissions are up by 14% year-on-year, while mortgage illustrations have increased by 3%.

Moreover, affordability usage and searches have also hit a new high, with a 75% year-on-year increase.

Nathan Reilly, director at Twenty7tec, said: “March’s mortgage market certainly was a mixed picture, with remortgage activity seeing a noticeable uptick of 13.8% overall compared to February, likely due to more customers looking to refinance amid ongoing speculation around rate cuts later in the year.

“On the purchase side, searches – including those from first-time buyers – dipped slightly by 2.4%, but we’re still seeing encouraging growth compared to this time last year, with first-time buyer search volumes over 10% higher than in March 2024.

“It’s also interesting to note the shift in fixed-term product preferences. The share of two-year fixed searches made up just 40.95% of activity, down from 51.51% a year ago, while interest in three- to five-year fixes has grown, increasing from 28.41% to 36.33%. Could this be indicating that borrowers are looking for a balance between flexibility and medium-term certainty?

“We’re also continuing to see strong adviser engagement with our affordability tools, and APPLY submissions remain strong – a sign that advisers are staying active and responsive in what remains an ever-changing market.”