Confidence returns but it’s no time for complacency – Pearson

HSBC UK’s latest Mortgage Broker Barometer reveals that nearly eight in 10 (78%) brokers rated their confidence at five or above, a notable jump from 62% just a quarter earlier. 

Good, but cautious, positivity 

This rise in optimism should not be underestimated.

Confidence plays a critical role in driving market momentum – influencing buyer behaviour, lender appetite, and broker business growth. But while these figures suggest we’re heading in a positive direction, it’s important to acknowledge that economic sentiment can be fragile.

As recent years have shown, confidence can fluctuate sharply in response to inflation pressures, rate decisions, or global events. 

Policy changes improving outlook

That’s why structural changes – like the easing of stress testing by some lenders – are especially impactful. They offer a more stable platform for growth by directly improving borrowing conditions.

HSBC UK, for example, estimates that its changes to stress rates could see first-time buyers offered an average of £39,000 more in borrowing capacity and accommodate 20,000 more mortgage applications. 

This is not just theoretical. Almost eight in 10 brokers (78%) report seeing an increase in the amount of lending agreed for clients, with 10% calling the rise “significant”. These are tangible results that can help restore momentum in the residential market. 

Confidence may ebb and flow – that’s the nature of our economic environment. But by creating more accessible lending frameworks, lenders can help ground that confidence in a real opportunity.

And that’s where the long-term recovery will take root.