The Intermediary Mortgage Lenders Association (IMLA) released its latest Mortgage Market Tracker report, which found that broker confidence in the mortgage industry dipped after the October Budget but rebounded by December.
Confidence levels returned to similar figures seen in the Q1 2024, with only 22% of intermediaries feeling ‘very confident’ about the market outlook, 65% ‘fairly confident’, 10% ‘not very confident’, and 2% ‘not at all confident’.
Brokers showed more trust in their own sector rather than the wider market.
Confidence improved in the intermediary sector, with 41% stating they were very confident and 51% fairly confident by December.
Brokers felt strongly about their own businesses too, with 42% reporting high confidence and 53% fairly confident over the three months.
These figures rose further to 56% very confident and 41% fairly confident in December.
Business activity remained consistent with previous quarters, as residential lending accounted for about two-thirds of intermediary business.
Buy to let dipped slightly to 22%, while specialist lending increased to 12%.
First-time buyers continued to dominate the residential market, making up around one-third of cases.
Remortgages and product transfers were almost evenly split, with both making up just under a quarter of all residential cases.
Kate Davies, executive director of IMLA, said: “October’s Budget dealt a blow to UK confidence across the board, including the mortgage market.
“However, November’s interest rate cut and a more dovish approach from the Bank of England may have contributed to the boost in sentiment at the end of the year.
“Throughout 2024, intermediaries have consistently expressed more confidence in their own businesses than the market itself, which is testament to their faith in their ability to keep delivering in the face of adversity.
Davies added: “When it comes to sub-sectors of the market, it is no surprise that buy to let has contracted slightly given the current conditions, the increase in Stamp Duty and the looming Renters’ Rights Bill, while a gradual rise in the proportion of specialist cases makes sense in an increasingly complex and challenging economic environment.
“It will be interesting to see whether remortgaging starts to take dominance over Product Transfers in the year ahead, as falling rates should improve affordability and provide more opportunities for existing borrowers to shop around the whole market with the help of their broker.”
