Mortgage adviser confidence in the broader market declined slightly in the fourth quarter of 2025, although sentiment improved towards year-end, according to the latest Mortgage Market Tracker from the Intermediary Mortgage Lenders Association (IMLA).
Overall confidence in the mortgage industry fell during the quarter and remained below levels typically recorded between 2015 and 2019. However, advisers maintained a more positive outlook for their own businesses, with 57% reporting they felt “very confident” and 43% “fairly confident” about their firms in December.
Business volumes and conversion rates
Business volumes showed a marginal decline, with the average intermediary placing 89 mortgage cases over the past 12 months, down from 92 in Q3 but above the 80 cases recorded in Q4 2024.
Process efficiency metrics improved across several measures. Decisions in Principle acceptance rates reached 86%, the highest level in three years. Conversion from DIP to completion increased to 40%, whilst full application to completion conversion rose from 62% to 65%. The data indicates that although intermediaries handled fewer cases, a higher proportion progressed to completion.
Market context
Kate Davies, executive director of IMLA, attributed the subdued confidence to economic uncertainty surrounding November’s Budget, which affected investment and growth in the second half of 2025.
According to IMLA’s New Normal Report, gross mortgage lending increased by 19% in 2025, with forecasts projecting 11% growth in 2026. Davies suggested that falling interest rates and greater fiscal policy clarity could support sentiment recovery as 2026 progresses.
Intermediaries currently guide approximately 90% of borrowers through the mortgage process, according to the association’s figures.
