Mortgage search volumes fell by 15% year-on-year in May, as the market starts to take a more "cautious approach", Twenty7tec has revealed.

The firm’s latest Mortgage Market Snapshot found that total mortgage searches reached 1,590,911 in May, marking a 7% month-on-month decline and a 15% annual drop across all major lending categories.

Residential searches fell by 7% and 16% month-on-month and year-on-year respectively to 1,341,508. Residential purchase searches dropped by 5% annually to 626,029, while first-time buyer searches dropped by 4% to 152,355.

Remortgage activity recorded “some of the sharpest declines” during the month, as searches dropped by 9% month-on-month and 21% year-on-year to 563,124, while buy-to-let (BTL) remortgage searches also dropped by 9% month-on-month.

Twenty7tec added that the BTL market experienced similar overall trends, as total searches reduced by 9% across the year to 249,403, while purchase searches reduced by 22%.

While there was softer search activity in May, the snapshot revealed that mortgage product availability increased during May after falling in April. Twenty7tec said this suggests that lenders continue to adjust their product ranges as market conditions evolve.

Chief customer officer at Twenty7tec, Nathan Reilly, stated: "After the heightened levels of activity seen earlier in the year, May's data suggests the market has entered a more cautious phase.

"One of the most interesting aspects of this month's report is the continued demand for complex lending criteria. Joint borrower sole proprietor enquiries returned to the top of the rankings, alongside searches relating to visas, foreign nationals, adverse credit and self-employed applicants.

"These remain some of the most common questions advisers are seeking answers to, reinforcing the increasingly specialist nature of mortgage advice with a human touch.

“May's figures do not necessarily point to a market in decline, but rather one that is continuing to adjust following the heightened activity seen earlier in the year."

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