There is a slight weakening in intermediary confidence at the end of the third quarter of 2025 due to the timing of the budget, the Intermediary Mortgage Lenders Association (IMLA) reveals.
Imla’s latest mortgage market tracker shows that the average intermediary placed 92 mortgage cases in the 12 months to September, slightly below the average of 94 in the second quarter.
Bank of England data shows that total secured lending recovered to £79 billion in the third quarter, up sharply from £58 billion in the second quarter, but broadly in line with the £76 billion in the first quarter.
Imla said the dip in the second quarter reflected a temporary lull after many borrowers brought forward completions to beat the end of the stamp duty holiday in April.
The latest figures indicate a return to a more sustainable and healthy level of business after this short-term distortion.
Confidence among brokers in the prospects for the mortgage sector fell in the third quarter, with the biggest dip recorded in September.
While confidence in the intermediary sector also fell slightly, advisors’ confidence in their own businesses remained largely stable, underscoring the sector’s resilience.
The average number of decisions in principle (DIPs) handled by intermediaries remained stable, with conversion performance remaining consistent throughout the mortgage process.
In total, 36% of DIPs led to a completed mortgage, which corresponds to the figure from the second quarter.
The conversion from complete application to completion remained stable at 62%, which averages around 10 completed cases per 17 applications.
On a regional basis, agents in the Midlands saw the strongest increases of 11 percentage points in offer to completion, while those in the South showed the weakest performance, with conversion rates marginally lower than in the previous quarter.
The business mix remained largely unchanged, with residential mortgages still accounting for around two-thirds of intermediary activity, buy-to-let just under a fifth, and specialist lending around one in ten cases.
Meanwhile, starters remained the largest customer group.
IMLA managing director Kate Davies said: “The dip in confidence seen in September coincided with the Chancellor’s decision to delay the Autumn Budget until November 26, extending a period of uncertainty that has weighed on sentiment across the economy – including the housing market.”
“Yet the intermediary market continues to perform strongly, with steady activity and continued customer demand, despite widespread caution.”
“It is extremely positive that the buy-to-let sector has remained resilient, despite concerns surrounding the Renters’ Rights Bill (now the Renter’s Rights Act, which received Royal Assent on October 28).”
“Looking ahead, there are understandable concerns about what the upcoming budget might bring. Further property-related taxes or fiscal tightening could dent confidence in the fourth quarter.”
“However, we should at least have more clarity by the end of November, even if the news is challenging, and intermediaries will, as always, be central to helping borrowers and landlords navigate the changes that come next.”
In October, Imla welcomed the government’s consultation on reforming the home buying and selling process.
The association describes the consultation as “a long-awaited opportunity to modernize one of the most outdated elements of the housing market”.