This is according to the latest data from the Intermediary Mortgage Lenders Association (IMLA) which said while brokers were ‘optimistic’ it was concerned the stamp duty holiday deadline would prove the biggest barrier to the sector’s recovery.
In its latest piece of research the organisation found the average number of mortgage cases handled by advisers fell from 90 between July and September to 78 in Q4.
However, the ‘vast majority’ of advisers remained positive about the outlook for their businesses (96%), the intermediary sector (92%), and the wider mortgage market (85%).
IMLA said its latest findings closely mirrored the results of its Q3 report, reflecting positive attitudes in the sector in the second half of 2020. However, activity levels and case completion rates remained lower than their pre-crisis levels.
Kate Davies, executive director of IMLA said: “While there are signs that the unprecedented demand we saw in summer and autumn 2020 was already starting to cool towards the end of the year, intermediaries clearly remain positive about the outlook for the mortgage market.
“Whilst the impending Stamp Duty deadline means that activity will remain high in the weeks ahead, there are clear signs that demand will continue beyond 31 March.
“Advisers are also recognising that 2021 is set to be a major year for the remortgage market too, presenting plenty of opportunity.”
IMLA has joined with the Association of Mortgage Intermediaries (AMI) in warning that consumers need to be prepared to meet the additional costs if they cannot complete by 31 March.
There is concern that, as the stamp duty holiday deadline looms closer, there will be more pressure on lenders, conveyancers and all those involved in the mortgage process as consumers race to beat the deadline.
Other findings
IMLA’s latest research also found while overall case volumes fell, the business mix (the proportion of cases relating different mortgage types) remained broadly similar.
Two thirds (66%) of cases handled by advisers were for residential mortgages, a further 26% related to buy-to-let customers, and a final 8% were specialist.
The average number of DIPs processed by advisers in Q4 (25) remained consistent with the findings in Q3 2020. There were more noticeable changes in the conversion rates seen in Q4 though, particularly when compared to earlier in the year.
While the conversion rate between DIPs and DIP-accepts in Q4 (81%) remained consistent with the three previous quarters (85% in Q1, 82% in Q2 and 80% in Q3), there was a much larger fall in the conversion of offers to completions.
In 2019, the conversion rate never fell below an average of 84%, on a quarterly basis. In 2020, conversions from offers to completions peaked at 79% in Q1 and fell to 65% in the final three months of the year.
Davies added: “Although the rollout of the vaccine programme also gives us all more confidence that the end of the Covid-19 crisis may be in sight, many borrowers’ and prospective borrowers’ financial circumstances may have changed significantly over the past year, meaning that many of them will benefit from the expert advice which mortgage intermediaries can offer.”
