Mortgage intermediaries kick off 2026 with unexpected activity, driven by borrower demand amid market jitters. Discover how the Iran conflict and swap rate volatility set the stage for a whirlwind start to the year!
The Intermediary Mortgage Lenders Association (IMLA) reveals a bustling start to 2026, with intermediaries handling an average of 96 cases per year, up from 89 in Q4 2025. This surge is attributed to borrowers fast-tracking their mortgage plans in response to the Iran conflict, which sparked volatility in swap rates and inflation concerns.
Despite this flurry of activity, the Bank of England’s data paints a different picture, showing a dip in gross secured lending from £78bn in Q4 2025 to £68bn in Q1 2026, highlighting the lag between applications and completed deals.
Intermediary confidence saw a modest recovery compared to late 2025, though it fluctuated throughout the quarter. Confidence peaked in February before the Iran conflict dampened spirits in March. Yet, confidence in advisers' own businesses remained robust, scoring a net 95, while sector and industry outlooks scored 82 and 79, respectively.
Pipeline efficiency softened slightly, with the proportion of Decisions in Principle (DIP) resulting in acceptance dropping to 83% from 86% in Q4, aligning with the longer-run average. The DIP-to-full-application rate held steady at 73% for the fourth consecutive quarter, showcasing consistency amidst change.
Kate Davies, IMLA’s executive director, noted the external shocks rather than market momentum drove Q1 activity. The Iran conflict and resulting swap rate volatility accelerated mortgage business into the first quarter, highlighting intermediaries' resilience and professionalism in guiding borrowers through uncertain times.
Image: Unsplash
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