Research carried out by the Intermediary Mortgage Lenders Association (IMLA) shows that the volume of business conducted by advisors during 2021’s second quarter reached new record levels.
This research reveals that there was a rise of 7% in the number of clients that mortgage advisors helped during that quarter, with first-time homebuyers largely accounting for this increase. In the period from April to June, an average advisor handled mortgage applications for 95 clients, whereas for January to March, the number was 89.
The figure for April to June is the highest average number of successful applications that advisors have completed in the five-year period since the IMLA first began recording it. Unsurprisingly, the research also found that the overwhelming majority of intermediaries – 98% – were either mildly or strongly optimistic about the industry’s future.
The Executive Director of the IMLA, Kate Davies, told FT Adviser that:
“We have seen advisors’ confidence levels and average business volumes increasing to some of the highest ever recorded.”
First-time homebuyers are a significant factor in this rise, as 23% more of the applications filed by advisors during the second quarter were for them, while in the first quarter, it was 20% more. The IMLA is arguing that lenders bringing back their lower deposit mortgages is the primary reason why applications from first-time buyers are on the rise.
The number of people going to a CeMAP training company to get the qualification needed to become an advisor is also rising – especially with these now being offered online.