The third quarter oversaw a slight dip in intermediary confidence, according to the latest Mortgage Market Tracker report from the Intermediary Mortgage Lenders Association (IMLA).

Figures showed the typical intermediary placed 92 mortgage cases in the 12 months to September, marginally below Q2’s average of 94.

IMLA revealed that confidence among brokers in the outlook for the mortgage industry edged down in Q3, with the largest dip recorded in September. While confidence in the intermediary sector also declined slightly, advisers’ confidence in their own businesses remained broadly stable, which the trade body said had underlined the sector’s resilience.

The average number of Decisions in Principle (DiPs) handled by intermediaries held steady in Q3, with conversion performance consistent across the mortgage process. Overall, 36% of DiPs led to a completed mortgage, matching the figure seen in Q2.

IMLA also said that conversion from full application to completion remained firm during the quarter at 62%, producing an average of around 10 completed cases from every 17 applications.

Executive director of IMLA, Kate Davies, noted that the dip in confidence recorded in September coincided with the Chancellor’s decision to delay the Autumn Budget until 26 November, which she said had extended a period of uncertainty that has “weighed on sentiment across the economy”.

“Looking ahead, there is understandable anxiety about what the forthcoming Budget might bring,” Davies commented. Further property-related taxation or fiscal tightening could affect confidence in Q4.

“However, by the end of November we should at least have greater clarity, even if the news is challenging, and intermediaries will, as ever, be central to helping borrowers and landlords navigate whatever changes come next.”

---