Imla data confirmed this had also driven industry confidence up from July to August last year with 63 per cent of intermediaries ‘very confident’ and 98 per cent confident about the industry’s prospects overall.
Intermediary confidence in the business outlook for their own firms also reached a three-year high, as the average number of Decisions in Principles (DIPs) that intermediaries processed in Q3 softened very slightly in July and August. However, volumes in September bounced back to reach the highest level seen since this time last year.
This came in the build up to the end of the government’s stamp duty holiday, with slow month-on-month increases from July to August, and a spike in September ahead of the month-end deadline.
The proportion of DIPs resulting in a DIP accept picked up strongly this quarter, reaching 85 per cent seeing a return to pre-pandemic levels.
The proportion of full applications resulting in a mortgage offer increased by three per cent to 89 per cent – the highest level reported since the end of 2019.
Overall conversion from offer to completion increased for the third successive quarter to 79 per cent and the conversion rate was higher at every level of the chain compared to the previous quarter, although these levels still remain below the high pre-pandemic levels.
Kate Davies, executive director, IMLA said these positive findings reflected a strong housing and mortgage market recovery in 2021.
“Our latest research into ‘underserved borrowers’ shows that over the next 12 months lenders are expecting to see numerous borrowers with complex financial situations, including those with credit impairments, and self-employed applicants.
“However, our research also found that lenders are willing to lend to complex borrowers, and that there are mortgage options available to those who have struggled financially as a result of the pandemic. For example, 88 per cent of lenders said that they would lend to self-employed borrowers, and 71 per cent said they would lend to those with irregular incomes.
“Advice is crucial, and with record numbers of maturities in the market at the moment, advisers will play an important role in helping those with complicated and complex financial circumstances find the most suitable deal.”
For the data itself co-ordinated by research agency BVA BDRC, click here.
