Broker confidence increases even as mortgage market outlook weakens

Broker confidence in their business outlook showed signs of growth, despite a slightly fading outlook for the mortgage market, as indicated by the latest report from the Intermediary Mortgage Lenders Association (IMLA). While overall confidence in the mortgage industry decreased slightly in the last quarter of 2025 and remains below levels seen in previous years, confidence in advisers’ firms performed better than sentiment about the wider mortgage market.

Advisers’ confidence in their own businesses improved steadily towards the end of the year, with 57% feeling ‘very’ confident and 43% ‘fairly’ confident about their business outlook in December. This highlights the resilience of broker businesses in the face of economic uncertainty. Although business volumes decreased slightly in the quarter, the average intermediary managed to place 89 mortgage cases over the past year, indicating a modest decline compared to the previous quarter but a significant improvement from the same period in 2024.

Despite the slight decrease in activity levels, efficiency in the mortgage process improved, as shown by data indicating that 86% of decisions in principle resulted in an acceptance, the highest rate recorded in the past three years. Conversion rates from DIP to completion also increased, underscoring the successful progression of a greater proportion of cases to completion.

According to Kate Davies, executive director of IMLA, the subdued confidence in the wider mortgage market at the end of 2025 was influenced by economic uncertainty leading up to and following the November Budget announcement. Despite this, gross mortgage lending increased by 19% in 2025 and is forecasted to grow by another 11% in 2026.

As the year progresses and economic conditions stabilize, with falling interest rates and clearer fiscal policies, confidence in the wider mortgage market is expected to improve. Broker confidence in their own businesses has remained strong throughout, highlighting the resilience of intermediary firms amidst policy uncertainties and economic instability. With intermediaries guiding approximately 90% of borrowers through the lending landscape, they are expected to continue playing a crucial role in the growing market, supporting borrowers and facilitating transactions efficiently.