Case volumes for intermediaries across the mortgage market remained at the same level in Q2 compared to the previous quarter, new data from the Intermediary Mortgage Lenders Association (IMLA) has revealed.

IMLA’s latest Mortgage Market Tracker showed that intermediary case volumes stood at 97 in Q2.

Confidence among intermediaries in the business outlook for their own firms also remained high in Q2, IMLA stated, with 52% of intermediaries “very confident” in the outlook for their firm. While this was down from 62% in Q1, the data shows that 98% of intermediaries are still confident overall, with only a very small minority (1%) describing themselves as “not very confident".

In terms of intermediary confidence in the outlook for the mortgage industry, while this was also down slightly on Q1 it still remains high. IMLA’s findings showed that 89% of intermediaries feel confident overall, compared to 94% in Q1. There was a similar pattern for confidence in the outlook for the intermediary sector, with overall confidence levels down from 96% in Q1, but still at 93% in Q2.

“Our Q2 data suggests that, despite a slight drop, advisers are continuing to respond to demand in the mortgage market by helping buyers to find new products for their housing ambitions or to remortgage,” IMLA executive director, Kate Davies, commented. “The data from the second quarter of 2022 shows a strong level of activity and overall good confidence in the sector.

“With inflation levels and interest rates reaching the highest levels in more than a decade, and the cost-of-living crisis continuing to affect millions in the UK, we expect to see more borrowers with complex financial situations seeking support from the mortgage market.”

IMLA’s Mortgage Market Tracker also revealed that the average number of decisions in principle (DIPs) processed by intermediaries fell slightly in Q2, to 28 from 32 in Q1. Despite this, levels picked up in June at 31 per intermediary, compared to the beginning of the quarter when they were at 26 per intermediary.

Furthermore, conversion rates from DIP to completion fell for the third successive quarter in Q2, to 43%, down from 44% in Q1. This was a return to the same level as 12 months ago and mirrors the conversion rate achieved in the same quarter last year.

“Fortunately, there are now many lenders that are willing to lend to complex borrowers, and plenty of mortgage options available to these individuals,” Davies added.

“Advice will also be crucial for these borrowers, and advisers will play an important role in helping those with complicated and complex financial circumstances find the most suitable deal.”  

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