According to Intermediary Mortgage Lenders Association’s (IMLA) latest mortgage market tracker report, this is only a small fall on the peak of 103 cases in Q4 2021.
The report also noted that the buy-to-let market is staying steady, with 28 per cent of all cases handled emanating from the buy-to-let space. This is an increase from 26 per cent in the previous quarter.
Over three quarters, 79 per cent, of brokers said they were confident about the outlook for the mortgage industry, which is up from 65 per cent in Q4.
The report continued that 87 per cent said they were confident about the outlook for the intermediary sector, which is on par with the level seen before the mini Budget.
DIPs and conversions fall in Q1 2023
The average number of decisions in principle (DIP) processed by intermediaries fell in Q1, which continues a trend over the past four quarters.
On average, intermediaries dealt with 23 DIPs, this is nine less than the same quarter last year.
However, while there was a fall in January to 18 DIPs, March saw the number rise to 27 DIPs.
In the first quarter of the year, conversions from DIP to completion fell to 34 per cent, which represents a 10 per cent fall year-on-year.
Regionally, this drop was driven by the North, where there was a fall of three per cent compared to the previous quarter, and the Midlands which recorded a four per cent fall on Q4 2022.
The number of conversions from DIP to completion stayed stable compared to the previous quarter.
The conversion rate from full application to completion remained static at 57 per cent. February recorded a conversion rate of 60 per cent, which is the highest rate since July.
Conversion rates for first-time buyer focused brokers grew by three per cent from Q4 2022 to Q1 2023.
Kate Davies (pictured), executive director of IMLA, said: “Given the recent uncertainty that we saw in the mortgage market in the final quarter of last year and at the start of 2023, these figures represent a positive shift. The growing confidence expressed by intermediaries is a strong signal that our sector is weathering current volatility.”
She continued: “Intermediary caseloads are continuing to rise, reflecting both brokers’ growing share of the mortgage market – something that was highlighted in IMLA’s ‘New Normal’ report this year – and the importance of advice.
“As borrowers face the challenges of the rising cost of living, many are clearly turning to intermediaries as a source of guidance and support. But there is also further good news for the market in that advisers are not just helping borrowers to remortgage, but also continuing to see demand from those looking to buy too.”
