Mortgage advisers processed more cases in the third quarter than any other since 2015, according to a new report from the Intermediary Mortgage Lenders Association (IMLA).
 
The latest results show that advisers processed an average 97 cases between July and September 2021, a figure 2% higher than the previous historic high.

IMLA said that intermediary confidence in the business outlook for their own firms also reached a three-year high, with 63% of intermediaries “very confident” and 98% confident overall. Furthermore, confidence in the outlook for the intermediary sector edged up in Q3, with the proportion feeling “very confident” now 10% higher than this time last year.

Confidence in the outlook for the mortgage industry increased again this quarter, with the proportion feeling “very confident” also reaching a new record high (46%) in Q3. The report stated that 97% of intermediaries are feeling confident about the outlook for the wider mortgage industry.

“The positive findings seen in our latest report clearly reflect the housing and mortgage market’s strong recovery in 2021,” commented IMLA executive director, Kate Davies.

“Government stimulus, such as the stamp duty holiday, also helped to stimulate demand, providing a much-needed confidence boost to buyers and helping to maintain momentum in the housing market. We have seen intermediary caseloads increase to record levels, and intermediary confidence levels increase to some of the highest recorded.”

IMLA’s data also showed that the average number of decisions in principle (DIPs) processed by intermediaries Q3 softened very slightly in July (26) and August (28). However, DIP volumes in September bounced back to reach the highest level seen since this time last year (35).

This trend was in line with the lead up to the end of the stamp duty holiday, with slow month-on-month increases from July to August, and a spike in September, as buyers rushed to complete deals before the 30 September deadline. The proportion of DIPs resulting in a DIP accept also picked up strongly this quarter, reaching 85%, which represented a return to pre-pandemic levels.

Davies added: “Our latest research into ‘underserved borrowers’ shows that over the next 12 months lenders are expecting to see numerous borrowers with complex financial situations, including those with credit impairments, and self-employed applicants.

“However, our research also found that lenders are willing to lend to complex borrowers, and that there are mortgage options available to those who have struggled financially as a result of the pandemic.

“Advice is crucial, and with record numbers of maturities in the market at the moment, advisers will play an important role in helping those with complicated and complex financial circumstances find the most suitable deal.”

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