The number of advisers feeling either ‘fairly’ or ‘very’ confident in the outlook for the intermediary sector increased from 85% in the first quarter to 88% in the second quarter. This increases still further when intermediaries are asked about the outlook for their own businesses, with 93% remaining positive.

IMLA’s study also found that advisers are enjoying an uptick in activity, with the average number of cases handled by intermediaries in the last 12 months recovering from 81 in March to 86 in May and 87 in June. Around two thirds (63%) of cases handled by advisers in the second quarter stemmed from residential borrowers.

Despite the increase in workloads, brokers still admit that the pandemic is causing disruption to their businesses. Just 59% of offers resulted in a completion last quarter, down sharply from the 79% registered in the first quarter and the 85% in Q4 of 2019. In addition, the number of DIPs being processed by intermediaries dropped from 24 in Q1 to just 17 in Q2.

Kate Davies, executive director of IMLA, said that the housing market has become a driving force behind the economy following lockdown, which has kept intermediaries positive about their future, with thousands of borrowers returning to the market after putting their plans on hold.

She added: “This doesn’t mean that the mortgage market is free from further challenges though. Lenders already faced a backlog of applications when the housing market reopened in May and this, combined with high levels of new demand from buyers is adding to operational pressures.

In some cases, applications are being delayed as lenders continue to adapt to the new normal, while supporting existing customers, in particular those who have come or are coming to the end of payment deferral periods.

“It’s too early to say whether the  demand we are currently seeing in the mortgage market will last, but for the moment it is clearly keeping intermediaries busy and positive, as they work through a wave of applications from hopeful buyers.”