The share of mortgage business conducted through intermediaries is set to continue its upwards trajectory over the next couple of years, a new report from the Intermediary Mortgage Lenders Association (IMLA) has indicated.

According to analysis by the association, this share will rise from 87% in 2024 to 89% in 2025 and 91% in 2026.

Other key predictions from IMLA in its latest findings include a 6% increase in gross mortgage lending from £237.5bn in 2024 to £275bn in 2025, growing a further 11% to £295bn in 2026, with house purchase lending of £177bn and £190bn respectively, and remortgaging of £88bn then £94bn.

IMLA said the increase in lending would be underpinned by lower interest rates and a rise in demand for remortgaging as affordability pressures ease.

“After a period of economic volatility, high inflation, rising borrowing costs and great uncertainty, the environment feels rather more settled, and the housing and mortgage markets are coping surprisingly well with the ‘new normal’, after the ultra-low interest rates of the last decade,” IMLA executive director, Kate Davies, said.

“[Next year] looks to be a year of greater stability and modest but welcome growth. Brokers will no doubt welcome a shift in emphasis from product transfers to remortgaging, and the opportunity that offers to fully assess their clients’ needs and scour the market for the most suitable solutions.”

IMLA is also predicting a rise of 14% in buy-to-let (BTL) lending to £38bn, and then an 11% jump to £42bn in 2026. The association said this growth would be supported by improved affordability for landlords as rates fall while rents carry on increasing, due to the structural supply and demand imbalance in the private rented sector.

“BTL landlords continue to face the challenge of increased regulation and higher taxes and will be looking to run their property businesses as efficiently as possible,” Davies added. “Many will rely on professional guidance in this endeavour.

“In a growing and increasingly competitive market, in 2025 mortgage advisers will play an even greater role in helping borrowers find the optimal solutions for their individual needs, with the share of business going through intermediaries set to break the 90% barrier in 2026 for the first time in the history of the market.”

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