Yet confidence in the future market has fallen significantly
Mortgage intermediaries are handling the highest levels of business in 16 years, but their confidence about the wider market outlook has fallen, according to the latest Mortgage Market Tracker from the Intermediary Mortgage Lenders Association (IMLA).
Its figures show that intermediaries placed an average 105 mortgage cases a year in Q2 2026, up from 96 in Q1 and the highest level recorded since Q1 2010. Mortgage brokers reported an average of 110 cases, compared with 71 among IFAs.
2026 saw an unusually busy start to the year as geopolitical uncertainty and volatility in swap rates encouraged some borrowers to bring forward mortgage activity, but intermediary business volumes continued to increase in Q2.
This is supported by Bank of England data, which showed that gross secured lending rose by £9bn over the quarter to £77bn.
Decisions in Principle also rise
Intermediaries dealt with an average of 29 Decisions in Principle (DIPs) during Q2, up from 26 in Q1, while the proportion of DIPs ultimately resulting in a completion increased from 37% to 40%. Around 11 of every 29 DIPs progressed through to completion.
Meanwhile, the proportion of DIP accepts progressing to full mortgage application rose from 73% to 78%, the first increase in a year. The proportion of full applications resulting in an offer also rose, up from 84% to 87%. Overall application-to-completion conversion remained unchanged at 61%.
First-time buyer-focused intermediaries saw a 10 percentage-point quarter-on-quarter improvement in conversion, to 39% of DIPs progressing to completion.
But despite the increased activity, net confidence in the mortgage industry fell by 13 points to 66, and in the intermediary sector by 12 points to 70. Confidence in advisers’ own firms was higher at 88, down seven points.
Contrast between sentiment and activity
Kate Davies, executive director of IMLA, said: “The most striking feature of these figures is the contrast between sentiment and activity. Intermediaries’ confidence has fallen but they are busier than ever, and conversion rates are improving.”
However, Davies said the unsettled economic and political backdrop meant the fall in confidence was unsurprising. “The conflict in the Middle East has pushed up energy prices and inflation expectations, reducing hopes of further cuts to Bank Rate this year, although the economic impact has so far proved less severe than initially feared. At home, another period of political uncertainty culminated in our seventh change of Prime Minister in a decade.
“Against that backdrop, the resilience of the mortgage market is encouraging. Andy Burnham has arrived in Downing Street on a wave of optimism and with an ambition to get the economy moving. It will be interesting to see whether that more positive mood feeds through into intermediary confidence in Q3.”
