"The data from the second quarter of 2022 shows a strong level of activity and overall good confidence in the sector."
Confidence amongst intermediaries in the business outlook for their own firms remains high. In Q2, 52% of intermediaries are ‘very confident’ in the outlook for their firm. While down from 62% in Q1, the data shows that 98% of intermediaries are still confident overall with only a very small minority (1%) describing themselves as ‘not very confident’.
Confidence in the outlook for the mortgage industry, while also down slightly on Q1, remains high. IMLA’s research reveals that 89% of intermediaries feel confident overall, compared to 94% in Q1. There was a similar pattern for confidence in the outlook for the intermediary sector, with overall confidence levels at 93% in Q2, down from 96% in Q1.
The average number of DIPs that intermediaries processed fell slightly in Q2 to 28, from 32 in Q1. Despite this, levels picked up in June (31 per intermediary), compared to the beginning of the quarter (26 per intermediary).
In Q2, conversion rates from DIP to completion fell for the third successive quarter to 43%, from 44% in Q1, returning to the same level as 12 months ago. This conversion rate mirrors that achieved in the same quarter last year.
Kate Davies, executive director at IMLA, commented: “Our Q2 data suggests that, despite a slight drop, advisers are continuing to respond to demand in the mortgage market by helping buyers to find new products for their housing ambitions or to remortgage. The data from the second quarter of 2022 shows a strong level of activity and overall good confidence in the sector.
“With inflation levels and interest rates reaching the highest levels in more than a decade, and the cost-of-living crisis continuing to affect millions in the UK, we expect to see more borrowers with complex financial situations seeking support from the mortgage market. Fortunately, there are now many lenders that are willing to lend to complex borrowers, and plenty of mortgage options available to these individuals.
“Advice will also be crucial for these borrowers, and advisers will play an important role in helping those with complicated and complex financial circumstances find the most suitable deal.”
