Cases processed by brokers hit a six-year high in the third quarter of this year, according to a report from the Intermediary Mortgage Lenders Association (Imla).
Advisers processed an average of 97 cases between July and September, which is 2% higher than caseloads worked through over a three-month period in 2015, says the trade body’s Mortgage Market Tracker.
Business outlook among brokers also hit a three-year high, with 63% of intermediaries saying they were ‘very confident’ and 98% of them reporting they were ‘confident overall’.
Intermediary confidence in the business outlook for their own firms also surged to a three-year high, with 63% of intermediaries ‘very confident’ and 98% saying they were ‘confident overall’.
Brokers also continued to express confidence in the mortgage industry outlook, which increased again this quarter with the proportion feeling ‘very confident’ coming in at a record 46% in the third quarter. In addition, 97% of advisers said they were confident on the outlook of the wider mortgage industry.
The average number of decisions in principle (DIP) intermediaries processed in the period softened in July, to 26, and August, 28, although, DIP volumes in September bounced back to hit the highest level since the same period last year, 35.
Imla says: “This is in line with the lead up to the end of the government’s stamp duty holiday, with slow month on month increases from July to August, and a spike in September as buyers rushed to complete deals before the September 30 deadline.
“Moreover, the proportion of DIPs resulting in a DIP accept picked up strongly this quarter, reaching 85%, seeing a return to pre-pandemic levels.”
The proportion of full applications resulting in a mortgage offer lifted by 3% to 89%, the highest level reported since the end of 2019, says the trade body.
It adds: “The overall conversion from offer to completion increased for the third successive quarter to 79%, and interestingly, the conversion rate was higher at every level of the chain compared to the previous quarter.
“However, these levels still remain below the high pre-pandemic levels.”
Imla executive director Kate Davies says: “The positive findings seen in our latest report clearly reflect the housing and mortgage market’s strong recovery in 2021.
“Government stimulus, such as the stamp duty holiday, also helped to stimulate demand, providing a much-needed confidence boost to buyers and helping to maintain momentum in the housing market.
“We have seen intermediary caseloads increase to record levels, and intermediary confidence levels increase to some of the highest recorded.
“Our latest research into ‘underserved borrowers’ shows that over the next 12 months lenders are expecting to see numerous borrowers with complex financial situations, including those with credit impairments, and self-employed applicants.
“However, our research also found that lenders are willing to lend to complex borrowers, and that there are mortgage options available to those who have struggled financially as a result of the pandemic.
“For example, 88% of lenders said that they would lend to self-employed borrowers, and 71% said they would lend to those with irregular incomes.
“Advice is crucial, and with record numbers of maturities in the market at the moment, advisers will play an important role in helping those with complicated and complex financial circumstances find the most suitable deal.”
The IMLA Mortgage Market Tracker uses data from data group BVA BDRC’s Project Mercury research, which has tracked marketing communications effectiveness and brand standing among mortgage intermediaries since 2007.
Findings for the third quarter of 2021 are based on around 300 interviews with mortgage intermediaries, collected between July, August, and September.
