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Applications leading to offers jump to three year high – IMLA

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  • 29/05/2019
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Applications leading to offers jump to three year high – IMLA
More than 89 per cent of applications from brokers in the first quarter of the year resulted in offers, according to the latest mortgage market tracker from the Intermediary Mortgage Lenders Association (IMLA).

 

That is the highest percentage recorded since IMLA began its study back in 2016.

IMLA noted there had been a “marked improvement” in the success of buy-to-let applications, with 89 per cent resulting in an offer. This had dropped to 87 per cent last year.

The first-time buyer market also saw an improvement, with 90 per cent of applications leading to an offer, up from as low as 86 per cent during 2018.

However, it is the specialist area of the market that has seen the strongest performance, with offers coming from 91 per cent of applications.

IMLA’s study found the number of offers that led to a completion for specialist mortgages were also at a three-year high at 89 per cent.

 

DIPs to applications

The research suggested that the number of accepted decisions in principle (DIPs) that led to a full application stood at 84 per cent overall. This is a strong increase from the same period last year when it stood at 76 per cent.

The increase was even more significant for first-time buyer mortgages, having jumped from 72 per cent to 84 per cent.

 

Broker confidence

Around 53 per cent of brokers said they feel ‘very confident’ about their own prospects, down by one percentage point from this time last year.

However, the number who are ‘fairly confident’ has risen from 41 per cent to 45 per cent over the same period.

Kate Davies, executive director of IMLA, noted that brokers were doing an “effective job” for a significant numbers of borrowers.

She continued: “The mortgage market is not immune from the current Brexit chaos – but it’s keeping calm and getting on with the business of helping people finance their home purchases.

“High quality advice will always be important – whatever the state of the economy and the political climate.”

 

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