Average adviser business volumes reached new highs in the second quarter of 2021, according to findings published by the Intermediary Mortgage Lenders Association (IMLA).

Up from an annual average of 89 cases in Q1 to 95 cases in Q2, IMLA stated that advisers have processed more applications than at any point since its Mortgage Market Tracker began recording intermediary business activity.

The trade body also suggested that confidence and business volumes continued to strengthen in Q2, with 98% of intermediaries reporting that they felt either “fairly” or “very” confident about the outlook for the mortgage industry in Q2. A further 97% of advisers also felt confident about the outlook for the intermediary sector.

However, intermediaries continued to feel most confident about the outlook for their own business last quarter, with 99% reporting feeling confident. The findings also indicated that six in 10 intermediaries also felt “very” confident about the outlook for their own firm compared to just four in ten this time last year.

IMLA executive director, Kate Davies, commented: “The positive findings of our latest report clearly reflect the strong recovery seen by the housing and mortgage markets in 2021.

“This buoyancy has driven activity and helped to provide confidence to consumers and the intermediary community. As a result, we have seen advisers’ confidence levels and average business volumes increasing to some of the highest recorded.”

IMLA’s membership of 44 banks, building societies and specialist lenders includes 18 of the 20 largest mortgage lenders in the UK.

The trade association’s latest findings also revealed that the average number of decisions-in-principle (DIPs) processed by intermediaries reached a two-year high in Q2, having increased from 28 to 31. The conversion rate from DIP to completion was, however, stable quarter-on-quarter at around 43% in both Q1 and Q2. The conversion rate from offer to completion also reached its highest level since the start of the pandemic (77%).

Davies added: “We may see a softening in purchase activity in the second half of 2021 in line with slowing government support, but advisers should feel spurred by the sizeable refinance market at play and a growing reliance on mortgage advice among those who have seen their financial circumstances complicated by the pandemic.”

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