Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Mortgage Intermediaries See Surge in Activity Amid Geopolitical Uncertainty

Mortgage intermediaries experienced an unusually active start to 2026, according to the Intermediary Mortgage Lenders Association (IMLA). The increase in demand was attributed to geopolitical turmoil, particularly the Iran conflict, which began in early 2026 and caused significant volatility in swap rates.

The IMLA's Mortgage Market Tracker reported that intermediaries placed an average of 96 mortgages per year, up from 89 in the first quarter of 2025. The association noted that this activity was driven by external shocks rather than underlying market momentum. The Iran conflict led to higher inflation expectations and prompted many mortgage borrowers to accelerate their remortgaging and purchase plans.

Intermediary confidence showed a modest recovery at the quarter level compared to the previous quarter, but month-by-month sentiment declined as the Iran conflict continued. Confidence improved between January and February but fell in March, with the sharpest drop in outlook for the wider mortgage industry. However, confidence in advisers’ own businesses remained more resilient and was the strongest among the three confidence measures tracked by IMLA.

The IMLA figures also indicated stability in the rate at which decisions in principle (DIPs) led to full applications, though there was a slight decrease in the proportion of DIPs resulting in a DIP accept, easing back to 83% from a previous high of 86% in Q4 2025. Despite this, the DIP-to-full-application rate remained stable across four consecutive quarters.

Changes to Financial Conduct Authority (FCA) guidance around affordability have led to many lenders allowing borrowers to access higher loan amounts. IMLA described this as a “quiet but meaningful tailwind” expected to support mortgage volumes through the rest of 2026.

For UK letting agents and inventory clerks, these trends may signal increased activity in the property market, with more borrowers accelerating their plans and a stable conversion rate from mortgage decisions in principle to full applications.