Brokers experienced a surge in activity during the first quarter, as the average number of cases placed per year rose to 96 from 89 in the last quarter of 2025.
The latest sector tracker from the Intermediary Mortgage Lenders Association (IMLA) shows that borrowers have brought forward their mortgage rates and purchases as the war in Iran led to rising swaps and prompted economists to downgrade their forecasts for future base rate cuts by the Bank of England.
Imla says the Bank of England’s gross secured credit data tells a contrasting story: it fell from £78 billion in the fourth quarter of 2025 to £68 billion in the first quarter, but this is largely due to the lag between application activity and completed transactions.
Broker confidence recovered somewhat compared to the fourth quarter of 2025, but the month-on-month picture tells a more nuanced story, Imla found.
Sentiment improved between January and February before falling in March as the conflict in Iran unfolded, with the sharpest deterioration in confidence about the prospects for the broader mortgage sector recorded.
Confidence in the advisors’ own activities remained more resilient, as in the past two years, with a net score of 95.
Confidence in the outlook for the intermediary sector stood at 82, while confidence in the wider mortgage sector stood at 79 – all three remain slightly below pre-Covid norms.
Imla managing director Kate Davies says: “The striking feature of the first quarter of 2026 is how much of the activity was driven by external shocks rather than underlying market momentum.
“The Iran conflict and the swap rate volatility it triggered appear to have attracted a significant volume of mortgage activity into the first quarter – activity that might otherwise have been more evenly spread throughout the year.
“Intermediaries responded with their usual professionalism and efficiency, supporting borrowers during a period of real uncertainty.
“While overall conversion rates have declined from strong levels in Q4 2025, they remain within a reasonable range, and the stability of the DIP-to-full application rate over four consecutive quarters is a reassuring signal of underlying process quality across the industry.
“It is worth noting that lenders’ willingness to re-examine affordability criteria following the FCA guidance changes has been a quiet but meaningful tailwind, and we expect this to continue to support volumes through the remainder of 2026.
“Intermediaries will, as always, be central to helping borrowers navigate a complex and fast-moving market.”