According to the Intermediary Mortgage Lenders Association (IMLA), the average caseload in Q2 was 97 ‒ the same number as Q1, down from a record 103 in Q4 2021.
The report is based on 300 interviews with mortgage intermediaries between July and September.
However, IMLA said that gross mortgage lending has remained strong coming to £85bn in Q3, according to the Bank of England. The trade body said that this was highest since Q2 2021, which was partially fuelled by the stamp duty holiday.
Intermediary confidence stable but mortgage sector falters
Intermediary confidence in the business outlook for their firms has stayed stable, with 51 per cent saying they were “very confident”, which compares favourably to 52 per cent in Q2.
Regarding the confidence of the intermediary sector overall, 91 per cent of intermediaries said they were confident overall, a slight decrease from 93 per cent in Q2.
Confidence in the intermediary community about the mortgage industry outlook has fallen to 81 per cent in Q3 from 89 per cent in the previous quarter.
Conversion rates dip for fourth successive quarter
The average number of decisions in principle (DIP) that intermediaries handled was roughly in line with the last quarter at 27, compared to 28 in Q2.
However, over the quarter DIPs increased, going from 26 per intermediary in July to 28 per intermediary in September.
Conversion rates from DIP to completion decreased for the fourth succession quarter to 38 per cent. This is down from 44 per cent in Q2 this year and 10 per cent down on the same period last year.
Kate Davies (pictured), executive director at IMLA, said: “It’s good to see that intermediaries are very confident in the business outlook of their own firms – it’s clear from our data this quarter that advisers are still very busy, with many saying that their overall workloads have increased.
“This is hardly surprising – the cumulative effects of the cost of living crisis, high inflation and higher interest and mortgage rates are creating increasingly complex circumstances for borrowers. This, in turn, makes the role of professional mortgage advisers more important than ever.”
