Buy to let mortgage searches fall again

Mortgage search activity in the UK has shown a notable decline in May 2026, with buy-to-let (BTL) mortgage enquiries continuing to fall. This trend reflects a cautious adjustment in the mortgage market following a period of heightened activity earlier in the year, which may have implications for landlords, letting agents, and property professionals navigating the current lending environment.

Overall Decline in Mortgage Searches

Data from Twenty7tec indicates that the total number of mortgage searches conducted in May 2026 dropped to approximately 1.59 million, representing a 7% decrease compared to April and a 15% reduction from May 2025. This downward movement was observed across both residential and buy-to-let sectors, signalling a broader market shift rather than an isolated trend.

Specifically, buy-to-let mortgage searches fell by 9% month-on-month to just under 250,000, and were 22% lower than the same period last year. Residential mortgage searches also declined by 7% compared to April, with a 16% year-on-year decrease. Within this, residential purchase searches decreased by 5%, while first-time buyer enquiries slipped by 4%, highlighting a general slowdown in mortgage demand across different buyer categories.

Market Adjustment and Lending Complexity

Nathan Reilly, Chief Customer Officer at Twenty7tec, suggests that the market is entering a more cautious phase after the surge in activity seen earlier in 2026. Rather than indicating a market decline, the data points to an ongoing adjustment as lenders and borrowers recalibrate their expectations and strategies.

One notable aspect of the current market is the sustained demand for mortgages involving complex lending criteria. Searches related to joint borrower sole proprietor arrangements, visa holders, foreign nationals, applicants with adverse credit histories, and self-employed individuals remain prominent. This trend underscores the growing need for specialist mortgage advice tailored to more intricate borrower profiles, emphasising the importance of professional guidance in navigating these cases.

Remortgage Searches Experience Significant Drops

Remortgage activity also saw marked reductions in May. Residential remortgage searches fell by 9% from April levels, reaching around 563,000, and were 21% lower than the same month in 2025. Buy-to-let remortgage searches mirrored this decline with a 9% month-on-month drop. These figures suggest that many borrowers may be delaying remortgage decisions amid uncertain market conditions or adjusting to changes in product availability.

Despite the decrease in search volumes, product availability improved during May following a decline in April. Lenders continue to modify their product ranges, which may offer new opportunities for borrowers, although adviser activity has eased somewhat. The complexity of borrower cases remains a significant factor, with advisers increasingly managing applications that require nuanced understanding and tailored solutions.

Implications for the Buy-to-Let Sector

The continued reduction in buy-to-let mortgage searches may reflect a cautious stance among landlords and investors in response to evolving lending criteria and market conditions. With fewer purchase and remortgage enquiries, landlords could face challenges in accessing finance or may be reassessing their investment strategies.

For letting agents and property managers, these trends may influence the volume and nature of rental property transactions, as financing availability often impacts landlord activity. It is important for professionals in the sector to stay informed about lending developments and to advise clients accordingly, particularly those considering portfolio expansion or refinancing existing properties.

What this means for landlords

Landlords should be aware that the mortgage market is currently experiencing a period of adjustment, with reduced search volumes indicating a more cautious lending environment. This may affect the availability and terms of buy-to-let mortgages, making it essential to plan financing needs carefully and seek expert advice on the most suitable products.

Given the prevalence of complex lending cases, landlords with non-standard circumstances—such as those who are self-employed, have adverse credit, or are foreign nationals—should anticipate additional scrutiny and potentially longer processing times. Engaging with mortgage advisers who specialise in these areas can help navigate the complexities and improve the chances of securing appropriate finance.

What TLA members should consider

• Review current and planned financing arrangements in light of the cautious mortgage market and potential changes to product availability.
• Consult specialist mortgage advisers experienced in complex lending criteria to support applications involving joint borrower sole proprietor structures, visa holders, or self-employed applicants.
• Monitor remortgage deadlines carefully to avoid missing favourable terms, especially as remortgage searches have declined and lenders adjust their offerings.
• Keep abreast of market developments through reliable sources and professional networks to anticipate changes that may impact rental property financing.
• Advise tenants and prospective landlords on the potential implications of mortgage market shifts, particularly where financing delays could affect tenancy agreements or property availability.
• Utilise TLA resources and training to stay informed about landlord compliance and financing options, ensuring well-rounded support for property management and investment decisions.

TLA Training Academy

The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

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TLA update

The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/