The Intermediary Mortgage Lenders Association (IMLA) has reported that mortgage brokers processed more cases in Q3 2021 than any other point since 2015.
The latest results show that, on average, advisers processed 97 cases between July 2020 and September 2021, 2% more than the previous historic high.
Intermediary confidence in the business outlook for their own firms also reached a three-year high, with 63% of intermediaries ‘very confident’ and 98% confident overall. Furthermore, confidence in the outlook for the intermediary sector edged up in Q3, with the proportion feeling ‘very confident’ now 10% higher than this time last year.
Confidence in the outlook for the mortgage industry increased again this quarter, with the proportion feeling ‘very confident’ reaching a new record high (46%) in Q3 2021. Also, 97% of intermediaries reported feeling confident about the outlook for the wider mortgage industry.
The average number of DIPs that intermediaries processed in Q3 softened very slightly in July (26) and August (28), however, DIP volumes in September bounced back to reach the highest level seen since this time last year (35). This is in line with the lead 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 as buyers rushed to complete deals before the September 30 deadline. Moreover, the proportion of DIPs resulting in a DIP accept picked up strongly this quarter, reaching 85%, seeing a return to pre-pandemic levels.
The proportion of full applications resulting in a mortgage offer increased by 3% to 89% – the highest level reported since the end of 2019. Overall conversion from offer to completion increased for the third successive quarter to 79%, and the conversion rate was higher at every level of the chain compared to the previous quarter. However, these levels still remain below the high pre-pandemic levels.
Kate Davies, executive director of IMLA, said: “The positive findings seen in our latest report clearly reflect the housing and mortgage market’s strong recovery in 2021. Government stimulus, such as the Stamp Duty Holiday, also helped to stimulate demand, providing a much-needed confidence boost to buyers and helping to maintain momentum in the housing market. We have seen intermediary caseloads increase to record levels, and intermediary confidence levels increase to some of the highest recorded.
“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% of lenders said that they would lend to self-employed borrowers, and 71% 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.”
