Average annual case volumes rose from 89 in quarter one to 95 in Q2, marking the most borrower applications ever processed by brokers replying to the Intermediary Mortgage Lenders Association (IMLA) quarterly survey.
Between April and June, 67 per cent of cases handled by advisers were for residential mortgages, 26 per cent related to buy-to-let borrowers and seven per cent were specialist deals. The mix of cases remain similar to the previous quarter. Advisers did experience a quarterly rise in the proportion of first-time buyer cases they handled rising from 20 per cent to 23 per cent which IMLA said could reflect the growing availability of low deposit mortgage products.
The average number of Decision in Principles (DIPS) processed by intermediaries reached a two-year high in Q2, increasing from 28 to 31.
The conversion rate from DIP to completion was stable quarter-on-quarter at 43 per cent in both Q1 and Q2.
The conversion rate from offer to completion also reached its highest level since the start of the pandemic reaching 77 per cent. Application to completion conversion rates also edged up to 67 per cent in Q2 2021, compared to 64 per cent in Q1 2021. Roughly two-thirds of applications resulted in a completion in Q2, a slight increase on the previous quarter.
Kate Davies (pictured), executive director of IMLA, said: “The positive findings of our latest report clearly reflect the strong recovery seen by the housing and mortgage markets in 2021.
“This buoyancy has driven activity and helped to provide confidence to consumers and the intermediary community. As a result, we have seen advisers’ confidence levels and average business volumes increasing to some of the highest recorded.
“Of course, we may see a softening in purchase activity in the second half of 2021 in line with slowing government support, but advisers should feel spurred by the sizeable refinance market at play and a growing reliance on mortgage advice among those who have seen their financial circumstances complicated by the pandemic.”