An unusually active start to 2026 as borrowers advance mortgage plans in response to volatility fears

Mortgage intermediaries experienced an unusually active start to 2026, with the average number of cases placed per year rising to 96, up from 89 in Q4 2025, according to the latest Mortgage Market Tracker report from the Intermediary Mortgage Lenders Association (IMLA).

It says the uplift was driven by a sharp wave of front-loaded borrower demand triggered by the Iran conflict, which has caused significant volatility in swap rates and expectations of inflation rises, prompting many mortgage borrowers to accelerate their remortgaging and purchase plans.

However, it says that Bank of England gross secured lending data tells a different story, explained by the lag between applications and completed transactions – falling to £68bn in Q1 from £78bn in Q4 2025.

Intermediary confidence sees modest recovery

The IMLA says that intermediary confidence recovered modestly at the quarter level compared with Q4 2025, but the month-by-month picture tells a more nuanced story. Sentiment improved between January and February before falling away in March as the Iran conflict unfolded, with the sharpest deterioration recorded in confidence about the outlook for the wider mortgage industry.

However, of the three confidence measures, confidence in advisers’ own businesses remained more resilient, as it has throughout the past two years, and was the strongest at a net score of 95. Confidence in the outlook for the intermediary sector stood at 82, while confidence in the broader mortgage industry was 79.

Pipeline efficiency softens

Business flow data shows some softening in pipeline efficiency compared with the Q4 2025 peak, though the picture remains broadly healthy. The proportion of Decisions in Principle resulting in a DIP accept fell back to 83% from the three-year high of 86% recorded in Q4, returning to the longer-run average. The DIP-accept-to-full-application rate held firm at 73% for the fourth consecutive quarter, a notable sign of consistency.

Kate Davies, executive director of IMLA, said: “The striking feature of Q1 2026 is how much of the activity was driven by external shock rather than underlying market momentum. The Iran conflict and the swap rate volatility it triggered appears to have pulled a significant volume of mortgage business forward into the first quarter – business that might otherwise have been spread more evenly through the year.

“Intermediaries responded with their customary professionalism and efficiency, supporting borrowers through a period of genuine uncertainty.”