PROPERTY & FINANCE INSIGHT – MAY 2025
BTL Market Slumps as Self-Employed and First-Time Buyers Step Up

The buy-to-let (BTL) mortgage sector has seen a sharp downturn, with searches in April falling to just 14.74% of the overall mortgage market—the lowest share recorded since tracking began in January 2020, according to fresh data from Twenty7tec.

This marks a sudden reversal from March, when BTL activity was among the highest on record. The £150,000–£250,000 price bracket was particularly impacted, with search volumes plummeting over 24% month-on-month.

🗣️ Nathan Reilly, Director at Twenty7tec, commented:
“Just last month, buy to let searches were among the highest we’ve ever recorded. Fast forward to April, and we’re seeing the lowest share of the market since we began tracking. The question now is whether this is a short-term blip or a sign of deeper structural change.”

Market Movers: Self-Employed & First-Time Buyers

While BTL activity dipped, other segments surged:

• Self-employed borrowers dominated late-April, with record-breaking search levels on 28 and 29 April.

• First-time buyers held steady, accounting for nearly 25% of all mortgage searches for the fifth month in a row.

• The 90%+ loan-to-value (LTV) segment also saw notable momentum, with four of the seven busiest days for ESIS documents taking place in April.

Flexibility Takes Priority

Borrower behaviour continues to evolve with a clear shift toward short-term certainty:

• 44.13% of fixed-rate mortgage searches in April were for two-year or shorter terms, up from 40.95% in March.

• Product availability remained strong, rising slightly from 25,266 options early in the month.

There was also a noticeable uptick in average applicant salaries, indicating a changing borrower demographic and possibly tighter affordability assessments.

What’s Next?

Reilly added:

“The market is still in flux. Borrowers and advisers are adjusting quickly to changes in affordability, product availability, and sentiment. It’s crucial that lenders and intermediaries remain agile and informed as we head into the second half of Q2.”

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