Business volumes remain stable despite growing uncertainty
Intermediary confidence in the mortgage market declined slightly at the close of the third quarter of 2025, according to a new report linking the softening in sentiment to uncertainty surrounding the Chancellor’s Budget announcement.
According to the latest Mortgage Market Tracker from the Intermediary Mortgage Lenders Association (IMLA), confidence among brokers in the outlook for the mortgage sector fell during Q3, with the sharpest decline in September.
Confidence within the intermediary sector also eased, though advisers’ confidence in their own businesses remained largely unchanged, reflecting ongoing resilience in the sector.
The report also showed that intermediaries placed an average of 92 mortgage cases in the year to September, a small decrease from the 94 cases recorded in the previous quarter.
Bank of England figures show that total secured lending reached £79 billion in Q3, up from £58 billion in Q2 and broadly matching the £76 billion seen in Q1. The Q2 dip followed a rush to complete transactions before the end of the Stamp Duty holiday in April, with Q3 figures signalling a return to more typical activity levels.
The average number of Decisions in Principle (DIPs) processed by intermediaries was steady, with conversion rates consistent throughout the mortgage process. Thirty-six percent of DIPs resulted in a completed mortgage, unchanged from Q2. The conversion rate from full application to completion held at 62 percent, equating to approximately 10 completions for every 17 applications.
Regional trends varied, with brokers in the Midlands reporting the largest increase in offer-to-completion rates, up 11 percentage points. In contrast, brokers in the South experienced a slight decline in conversion rates compared to the previous quarter.
The composition of business remained stable. Residential mortgages accounted for about two-thirds of intermediary activity, buy-to-let made up just under a fifth, and specialist lending comprised around one in 10 cases. First-time buyers continued to represent the largest client group.
“The dip in confidence recorded in September coincided with the Chancellor’s decision to delay the Autumn Budget until Nov. 26, extending a period of uncertainty that has weighed on sentiment across the economy - housing included,” said Kate Davies (pictured right), executive director at IMLA.
“Yet the intermediary market continues to perform strongly, with steady activity and sustained customer demand despite widespread caution. It’s particularly positive that the buy-to-let sector has remained resilient, despite concerns around the Renters’ Rights Bill (now the Renter’s Rights Act, having gained Royal Assent on Oct. 28).
“Looking ahead, there is understandable anxiety about what the forthcoming Budget might bring. Further property-related taxation or fiscal tightening could affect confidence in Q4. However, by the end of November we should at least have greater clarity, even if the news is challenging, and intermediaries will, as ever, be central to helping borrowers and landlords navigate whatever changes come next.”
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