Confidence among mortgage intermediaries in the outlook for the industry declined in Q4, according to findings from the Intermediary Mortgage Lenders Association (IMLA).

The body’s latest Mortgage Market Tracker report highlighted that while intermediary confidence improved in both Q2 and Q3 last year, the final quarter – which included October’s Budget announcement – saw it revert back to a similar level reported in Q1.

In Q4, the findings indicated that 22% of intermediaries said they felt “very confident” in the market outlook, with 65% “fairly confident”. One in 10 (10%) said they felt “not very confident” and 2% “not at all confident”, which was just a 1% variation on the report’s results for Q1 last year.

Brokers expressed greater faith in the intermediary sector itself than the wider market, and their confidence grew over the quarter, with 41% describing themselves as very confident in the sector, and 51% fairly confident in December.

IMLA executive director, Kate Davies, said: “Throughout 2024, intermediaries have consistently expressed more confidence in their own businesses than the market itself, which is testament to their faith in their ability to keep delivering in the face of adversity.

“When it comes to sub-sectors of the market, it is no surprise that buy to let has contracted slightly given the current conditions, the increase in stamp duty and the looming Renters’ Rights Bill, while a gradual rise in the proportion of specialist cases makes sense in an increasingly complex and challenging economic environment.

“It will be interesting to see whether remortgaging starts to take dominance over product transfers in the year ahead, as falling rates should improve affordability and provide more opportunities for existing borrowers to shop around the whole market with the help of their broker.”

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