Research from the Intermediary Mortgage Lenders Association (IMLA) found brokers stayed confident in Q2 2025, even as market activity slowed after the Stamp Duty holiday ended in April.
Bank of England figures showed gross secured lending dropped from £76bn in Q1 to £58bn in Q2.
Intermediary confidence in their own businesses went up slightly over the quarter, with a dip in May before recovering in June.
Confidence in the sector as a whole stayed steady compared to Q1, dipping in June but still stronger than confidence in the wider mortgage market.
Brokers placed an average of 102 cases a year, up from 95 the quarter before.
The number of decisions in principle (DIP) handled dropped to 30 from 33 in Q1, though this was still higher than at the end of last year.
The average conversion from full application to completion fell to 61%, the lowest since the end of 2023.
Conversion from decision in principle (DIP) to completion dropped by seven percentage points to 35%, in line with levels seen in Q4 2024.
Residential mortgages made up two-thirds of business for intermediaries.
Buy-to-let (BTL) accounted for just under a quarter, despite concerns about the Renters’ Rights Bill.
Specialist lending made up around one in 10 cases and first-time buyers (FTBs) were the biggest customer group.
Kate Davies (pictured), executive director at IMLA, said: “As expected, Q2’s figures reflect the front loading of mortgage business in Q1 this year caused by the end of the Stamp Duty holiday in April.
“They also reflect a market adjusting to tighter than anticipated economic conditions, given the slow pace of Bank Base Rate cuts and continued pressure on household finances.
“However, intermediaries continue to demonstrate resilience and confidence in their ability to deliver.”
Davies added: “Activity in the buy-to-let sector remains reassuringly buoyant, particularly in light of the concerns many have expressed over the imminent legislative changes the Renters’ Rights Bill will impose on landlords.
“This is an industry used to navigating uncertainty, and brokers are continuing to support customers through a complex lending environment.
“As interest rates and affordability gradually improve, and as more lenders implement looser regulation such as the increased Loan to Income flow limits, we hope to see greater momentum return to the mortgage market in the second half of the year.”
