Sentiment among brokers remained positive in the second quarter despite a cooling market, according to data from the Intermediary Mortgage Lenders Association (IMLA).
The latest Mortgage Market Tracker Report from the IMLA shows evidence of brokers’ confidence in their businesses and the wider sector throughout the second quarter.
This is despite a softening in market activity following the end of the Stamp Duty holiday in April and long long-term confidence remaining below 2022 levels.
The average number of cases annually placed by brokers increased to 102, up from 95 the previous quarter.
While confidence held firm, business flow indicators showed some slight signs of strain.
The number of decisions in principle that brokers dealt (on average) with fell to 30 from 33 in Q1, but was still up compared to the levels at the end of last year.
The average conversion from full application to completion decreased to 61% — the lowest since the end of 2023.
Conversion from DIP to completion also declined by seven percentage points to 35%, matching the level seen in Q4 2024.
Despite these falls, Kate Davies — executive director at the IMLA — took confidence from the resilience being seen in the BTL sector.
“Activity in the BTL sector remains reassuringly buoyant, particularly in light of the concerns many have expressed over the imminent legislative changes the Renters’ Rights Bill will impose on landlords,” said Kate.
“This is an industry used to navigating uncertainty, and brokers are continuing to support customers through a complex lending environment.
“As interest rates and affordability gradually improve, and as more lenders implement looser regulation such as the increased Loan-to-Income flow limits, we hope to see greater momentum return to the mortgage market in the second half of the year.”
