Brokers faced a surge in activity during the first quarter as the average number of cases placed per year rose to 96, from 89 in the final quarter of 2025.

The latest industry tracker from the Intermediary Mortgage Lenders Association (IMLA) suggests that borrowers brought forward remortgages and purchases as the war in Iran triggered soaring swaps and prompted economists to revise down forecasts for future Bank of England base rate cuts.

Imla says that Bank of England gross secured lending data tells a contrasting story, falling to £68bn in Q1 from £78bn in Q4 2025, but this is largely attributable to the lag between application activity and completed transactions.

Broker confidence recovered somewhat compared to Q4 2025, but the month-by-month picture tells a more nuanced story, Imla found.

Sentiment improved between January and February before falling away in March as the Iran conflict unfolded, with the sharpest deterioration recorded in confidence about the outlook for the wider mortgage industry.

Confidence in advisers’ own businesses remained more resilient, as it has throughout the past two years, with a net score of 95.

Confidence in the outlook for the intermediary sector stood at 82, while confidence in the broader mortgage industry was 79 – all three remain a little below pre-Covid norms.

Imla executive director Kate Davies says: “The striking feature of Q1 2026 is how much of the activity was driven by external shock rather than underlying market momentum.

“The Iran conflict and the swap rate volatility it triggered appears to have pulled a significant volume of mortgage business forward into the first quarter – business that might otherwise have been spread more evenly through the year.

“Intermediaries responded with their customary professionalism and efficiency, supporting borrowers through a period of genuine uncertainty.

“While overall conversion rates have eased from the strong Q4 2025 levels, they remain within a reasonable range, and the stability of the DIP-to-full-application rate across four consecutive quarters is a reassuring signal of underlying process quality across the sector.

“It is worth noting that lenders’ willingness to revisit affordability criteria following the FCA’s guidance changes has been a quiet but meaningful tailwind, and one that we expect to continue supporting volumes through the rest of 2026.

“Intermediaries will, as ever, be at the centre of helping borrowers navigate a complex and fast-moving market.”