Brokers processed a record number of cases in Q2, even as sentiment weakened amid economic and political uncertainty
Mortgage intermediaries handled their highest volume of business since 2010 in the second quarter of 2026, even as confidence in the broader market declined, according to the Intermediary Mortgage Lenders Association's (IMLA) latest Mortgage Market Tracker.
The average number of cases placed by intermediaries climbed to 105 in Q2, up from 96 in Q1 and the highest figure recorded since Q1 2010.
Brokers averaged 110 cases over the period, compared with 71 among IFAs.
The rise followed a strong start to the year, when geopolitical uncertainty and swap rate volatility prompted some borrowers to accelerate their mortgage activity. Rather than easing in Q2, volumes increased further. Bank of England data corroborates the trend, with gross secured lending rising by £9 billion over the quarter to £77 billion.
Pipeline data also reflected the market's resilience. Intermediaries handled an average of 29 Decisions in Principle (DIPs) during Q2, up from 26 in Q1, while the proportion of DIPs progressing to completion rose from 37% to 40% — equivalent to approximately 11 in every 29 cases.
Conversion rates improved earlier in the pipeline too. The share of DIP accepts advancing to full mortgage application rose from 73% to 78%, the first increase in a year, and the proportion of full applications resulting in an offer climbed from 84% to 87%. Overall application-to-completion conversion held steady at 61%.
Intermediaries focused on first-time buyers recorded a particularly notable improvement, with 39% of DIPs reaching completion — a rise of 10 percentage points on Q1.
The volume gains were nonetheless accompanied by a significant fall in confidence about the wider outlook. Net confidence in the mortgage industry fell 13 points to 66, while confidence in the intermediary sector dropped 12 points to 70. Sentiment towards advisers' own businesses was more resilient, declining seven points but remaining high at 88.
"The most striking feature of these figures is the contrast between sentiment and activity," said IMLA executive director Kate Davies (pictured right). "Intermediaries' confidence has fallen but they are busier than ever, and conversion rates are improving.
"The fall in confidence is understandable given the unsettled economic and political backdrop. The conflict in the Middle East has pushed up energy prices and inflation expectations, reducing hopes of further cuts to Bank Rate this year, although the economic impact has so far proved less severe than initially feared.
"At home, another period of political uncertainty culminated in our seventh change of Prime Minister in a decade. Against that backdrop, the resilience of the mortgage market is encouraging. Andy Burnham has arrived in Downing Street on a wave of optimism and with an ambition to get the economy moving. It will be interesting to see whether that more positive mood feeds through into intermediary confidence in Q3."
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