A vast majority of brokers have seen a rise in lending following recent regulatory conditions and more settled business conditions.   

Almost eight in ten intermediaries, or 78%, noted an increase in the amount of lending agreed for their clients, data from HSBC’s latest quarterly Mortgage Broker Barometer shows. 

The move follows major lenders, such as HSBC, Santander, Leeds Building Society, Barclays, and Nationwide among others, have also eased their affordability rules to allow up to £39,000 of extra borrowing for first-time buyers, home movers and remortgagers.    

The moves from these lenders come after the Financial Conduct Authority said in March that lenders have been “too cautious” in granting FTB home loans under current rules.    

Brokers demonstrate increased confidence in the economy when looking ahead over the next six months to a year, the HSBC survey says. 

It finds that 78% of brokers rated their confidence in the economy at 5 or above — on a scale where 10 is ‘extremely confident’ — a notable increase from 62% in the first Broker Barometer released in April. 

The first survey came at a time when US President Donald Trump’s policy on global trade tariffs was beginning to roil world markets. 

This optimism led 87% of brokers to forecast that the Bank of England base rate, currently at 4.25%, will be cut by the end of the year. 

Money markets currently price in two quarter-point reductions in the second half of this year, taking base rate down to 3.75%. 

As a result, six in ten brokers expect residential mortgage applications to increase over the next six months.  

The report adds that 12% of brokers expect the volume of residential applications to “significantly” rise, while 51% anticipate a slight increase in residential mortgage applications, marking a 13% rise in optimism compared to the previous survey. 

However, while there appears to be high confidence in increased volume among residential mortgages, confidence in landlord loans is more muted. 

The majority of brokers expect buy-to-let mortgage applications to remain at the current level, mirroring the results of the first Broker Barometer, while an additional 20% of brokers expect a rise.  

Although, a quarter of brokers expect a slight fall in BTL applications. 

HSBC UK head of intermediary mortgages Chris Pearson says: “The recent adjustments to stress rates by lenders are clearly making a positive and tangible impact. 

He adds: “It’s also encouraging to see a palpable increase in optimism among mortgage brokers, particularly in relation to the residential market and broader economic confidence.  

“The strong expectation for a reduction in the Bank of England base rate signals a potential easing of pressure for borrowers and could further stimulate activity at both a market level and individual broker level.  

“While there are a number of factors that determine mortgage rates, including international swap rates, the base rate remains an important economic indicator, often being one of the main drivers of economic confidence.” 

The HSBC survey interviewed over 1,100 mortgage brokers in July.