Mortgage intermediaries handled a record level of business in the second quarter, despite a "marked decline" in confidence over the wider mortgage market, according to the latest figures from the Intermediary Mortgage Lenders Association (IMLA).

IMLA's Mortgage Market Tracker found that the average number of mortgage cases placed by intermediaries rose to 105 a year in Q2 2026, up from 96 in Q1 and the highest level recorded since Q1 2010. Brokers reported an average of 110 cases, compared with 71 among IFAs, while Bank of England data showed gross secured lending increased by £9bn over the quarter to £77bn.

Pipeline conversion also improved. Intermediaries handled an average of 29 decisions in principle (DIP), up from 26 in Q1, with the proportion progressing to completion rising from 37% to 40%.

The share of accepted DIPs progressing to full applications increased from 73% to 78%, while the proportion of applications resulting in an offer rose from 84% to 87%.

Application-to-completion conversion remained at 61%.

First-time buyer-focused intermediaries recorded a particularly strong improvement, with 39% of DIPs progressing to completion, up 10 percentage points from Q1.

However, the tracker, which is based on 100 interviews with mortgage intermediaries conducted by Ipsos in June, also showed that confidence in the wider market weakened amid economic and political uncertainty.

Net confidence in the mortgage industry fell 13 points to 66, while confidence in the intermediary sector dropped 12 points to 70. Confidence in advisers’ own firms remained considerably stronger at 88, despite falling seven points.

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.”

She added: “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.”

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