Following the General Election, confidence among intermediaries dipped marginally, as observed in the recent IMLA report.
- Despite a decrease in personal business confidence among brokers, overall sentiment in the mortgage sector remains strong.
- Advisers’ positivity towards the intermediary sector saw fluctuations, eventually stabilising post-election.
- A slight reduction in business volumes and buy-to-let proportions was seen, yet the market remains resilient.
- Economic uncertainty continues to challenge advisers, demanding diligence and adaptability.
The latest report from the Intermediary Mortgage Lenders Association (IMLA) indicates that intermediary confidence has slightly wavered following the General Election. However, the overall sentiment towards the mortgage industry remains robust. Although brokers experienced a marginal dip in confidence regarding their own businesses, the general outlook for the sector stabilises in the wake of political changes.
There was a noticeable fluctuation in how advisers perceived the intermediary sector’s prospects. In July, a decline was observed where only 33% of advisers felt ‘very positive’, a drop from 42% in the previous month. This perception rebounded to 44% by September. This resilience, despite the initial post-election tremor, underscores a recovering mortgage market.
Brokers’ confidence in their businesses declined slightly, after an increase in the previous quarter. Those who reported feeling ‘very confident’ about their businesses decreased from 54% in Q2 to 44% in Q3. Meanwhile, those considering themselves ‘fairly confident’ rose from 43% to 51%.
Despite these shifts in sentiment, the overall historical confidence levels remain high. The number of mortgage cases processed annually by intermediaries dropped slightly from 96 in Q2 to 92 in Q3. There was also a small decrease in the buy-to-let sector from a quarter of cases to 22%, yet residential lending remained predominant, forming 68% of total cases.
Furthermore, the average number of Decisions in Principle (DIPs) intermediaries handled returned to long-term averages, marking 27 from a peak of 33 in Q2. Conversion rates from DIP to completed mortgages stabilised at 39%, reflecting a correction towards standard market conditions.
According to Kate Davies, the executive director of IMLA, the election-induced wobble in advisor confidence was minimal, and positive sentiment about the mortgage market endures. Even the slight decline in buy-to-let proportions failed to diminish the sector’s solid performance, despite concerns regarding potential policy changes under a new government.
Economic challenges persist, posing difficulties for intermediaries who must remain vigilant and responsive. The budget and international political events may further influence the economic landscape, as noted by Davies, adding layers of complexity to the operational environment in the coming quarters.
In summary, while intermediary confidence dipped slightly post-election, the sector’s resilience remains a positive indicator for future stability.
