Intermediary confidence softened in the final quarter of 2025, the Intermediary Mortgage Lenders Association (IMLA) has revealed.

The association’s latest Mortgage Market Tracker found that in Q4, overall confidence in the outlook for the mortgage industry fell slightly, remaining below the levels typically seen in 2015 and 2019.

Confidence in the outlook for advisers’ own firms continued to outperform sentiment about the wider mortgage market and improved throughout the quarter, however.

In December, 57% of advisers felt very confident about the outlook for their business, while 43% felt fairly confident. IMLA said this underlines the resilience of broker businesses despite economic uncertainty.

The association revealed that business volumes eased modestly during the quarter, as the average intermediary placed 89 mortgages cases over the past 12 months. This compares to the average of 92 cases placed in Q3, but is well ahead of the 80 cases averaged Q4 2024.

The Mortgage Market Tracker found that while activity levels dipped slightly on a quarterly basis, business flow data points to improved efficiency across the mortgage process.

The proportion of decisions in principle (DIP) resulting in a DIP accept increased to 86%, which is the highest level recorded in the last three years.

Overall conversion from DIP to completion rose by four percentage points quarter-on-quarter to 40%, while full application to completion conversion improved from 62% to 65%.

IMLA said the latest figures suggest that although advisers may be handling slightly fewer cases, a greater proportion are successfully progressing through to completion.

Executive director at IMLA, Kate Davies, stated: "It is understandable that confidence in the wider mortgage market was somewhat subdued at the end of last year. In Q4, advisers were operating against a backdrop of economic uncertainty exacerbated by the run-up to and announcement of November’s Budget, which put a dampener on investment and growth throughout the second half of 2025.

"In fact, according to IMLA’s own figures as recorded in the New Normal Report, gross mortgage lending increased by 19% in 2025, and is forecast to grow another 11% this year. s we move further into 2026, with the Budget and Budget speculation firmly behind us, falling interest rates and greater clarity around fiscal policy should help support a firmer recovery in sentiment regarding the wider mortgage market.

"Broker confidence in their own businesses has remained extremely robust throughout, underlining the resilience of intermediary firms despite policy uncertainty and an unsettled economic environment. As the market grows this year, intermediaries will continue to play a central role in guiding around 90% of borrowers through a complex and competitive lending landscape."

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