New data points to softer sentiment but stronger process efficiency at the end of 2025
Intermediary confidence in the mortgage market edged lower in the final quarter of 2025, even as advisers reported firmer confidence in their own businesses and better conversion through the sales pipeline, according to the latest Mortgage Market Tracker from the Intermediary Mortgage Lenders Association (IMLA).
The report shows that sentiment about the outlook for the mortgage industry as a whole fell back in Q4 and remains weaker than levels typically recorded between 2015 and 2019. Confidence in individual firms, however, continued to run ahead of views on the wider market and strengthened as the year drew to a close.
By December, all surveyed advisers reported confidence in their own business prospects, with 57% describing themselves as “very” confident and 43% as “fairly” confident. IMLA said this underscored the resilience of intermediary firms despite ongoing economic uncertainty.
Activity levels eased slightly on the quarter. The average intermediary submitted 89 mortgage cases over the preceding 12 months, down from 92 in Q3 2025, but still well above the 80-case average reported in Q4 2024.
Despite the moderation in volumes, the data points to greater efficiency in moving cases through the process. The share of Decisions in Principle (DIPs) that went on to receive a DIP accept rose to 86%, the highest level in three years.
Overall conversion from DIP to completion increased to 40%, up four percentage points on the previous quarter, while the proportion of full applications reaching completion improved from 62% to 65%. IMLA said this indicates that intermediaries may be handling marginally fewer cases, but a larger proportion are now completing.
“It is understandable that confidence in the wider mortgage market was somewhat subdued at the end of last year,” said Kate Davies (pictured top), executive director at the Intermediary Mortgage Lenders Association. “In Q4, advisers were operating against a backdrop of economic uncertainty exacerbated by the run-up to and announcement of November’s Budget, which put a dampener on investment and growth throughout the second half of 2025.
“In fact, according to IMLA’s own figures as recorded in the New Normal Report, gross mortgage lending increased by 19% in 2025, and is forecast to grow another 11% this year.
“As we move further into 2026, with the Budget (and Budget speculation) firmly behind us, falling interest rates and greater clarity around fiscal policy should help support a firmer recovery in sentiment regarding the wider mortgage market.
“Broker confidence in their own businesses has remained extremely robust throughout, underlining the resilience of intermediary firms despite policy uncertainty and an unsettled economic environment. As the market grows this year, intermediaries will continue to play a central role in guiding around 90% of borrowers through a complex and competitive lending landscape.”
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