Adviser confidence grows despite weaker market outlook, according to IMLA

In the latest Mortgage Market Tracker report from the Intermediary Mortgage Lenders Association (IMLA), it has been noted that despite softer market sentiment, adviser confidence in their businesses remains steadfast. Although the overall intermediary confidence saw a slight dip in Q4 of 2025, this did not discourage advisers from displaying growing optimism for their firms throughout the quarter.

The report indicated that while advisers’ outlook for the broader mortgage market slightly weakened, their confidence in their own businesses continued to shine, surpassing general market sentiments. In December, 57% of advisers were “very” confident about the future of their business, with 43% feeling “fairly” confident. The resilience exhibited by broker firms in the face of difficult market conditions truly shone through.

Business activity saw a slight decline as the average intermediary handled 89 mortgage cases over the past year in contrast to 92 in Q3, although this was notably still higher than the 80 cases recorded in Q4 of 2024. Despite the moderate slowdown in activity, conversion rates across the mortgage process showed improvement.

Key metrics showcased conversion progressions with the proportion of Decisions in Principle (DIP) translating into DIP acceptance reaching an astounding 86%, the highest in three years. Meanwhile, the transition from DIP to completion advanced by 4% from the previous quarter, elevating to 40%. Besides, conversion from full application to completion also surged, escalating from 62% to 65%.

Kate Davies, the executive director of IMLA, noted, “It is understandable that confidence in the wider mortgage market was somewhat subdued at the end of last year. 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.”

Davies further expressed, “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.”

She concluded by stressing the significant role intermediaries play in guiding borrowers through the multifaceted lending sphere, emphasizing the pivotal responsibility brokers have in navigating borrowers through a complex and competitive lending landscape even as the market expands further in 2026.