Buy-to-let purchase searches have dropped by 22% in the last year, to 76,324, according to Twenty7Tec’s latest mortgage market data.

Reflecting recent NRLA figures showing that three times more landlords have sold property than purchased property during the past year, Twenty7Tec reports that buy-to-let searches reached 249,403 in May, 13% lower than in May 2025, with BTL remortgage searches falling 8% to 173,079.

Nathan Reilly, chief customer officer, (pictured right) says after the heightened levels of activity seen earlier in the year, May’s data suggests the larger property market has entered a more cautious phase. Similar patterns can be seen across purchase, remortgage and buy-to-let activity, indicating that many borrowers continue to take a measured approach against a backdrop of affordability pressures and wider economic uncertainty.

“Inflationary pressures remain, household finances continue to be stretched for many, and the broader economic outlook remains uncertain,” says Reilly. “Against that backdrop, it’s perhaps unsurprising that activity levels have moderated. May’s figures do not necessarily point to a market in decline, but rather one that is adjusting.”

Number

The number of buy-to-let products was up to 5,142 last month from 5,093 in April, according to Moneyfacts, while an average fixed rate LTV on a two-year fix now stands at 5.36%, with a five-year at 5.69%.

Across the mortgage market generally, demand is increasingly shifting towards two-year fixed-rate mortgages, while the attraction to five and 10-year fixes continues to decline. The analyst says it appears many borrowers believe the recent spike in mortgage rates will prove temporary and are willing to pay a small premium for a shorter fix in the expectation that they will be able to refinance onto a more competitive deal in the future.

Lenders

This week has seen lenders introduce cuts across a raft of BTL products, including HSBC, Darlington Building Society and The Mortgage Works. Paragon Bank has cut rates across its buy-to-let mortgage range, alongside a refreshed set of fee structures. The changes apply across both two-year and five-year fixed rate products, and the range now starts from 3.55%, with options available for purchase and remortgage up to 75% loan-to-value.

Jason Wilde, head of mortgage sales, explains: “Landlords are navigating a market that continues to be shaped by political and economic uncertainty. In this environment, we are seeing many opt for higher fee products in order to secure a lower headline rate.”

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