HSBC UK Broker Barometer: Mortgage broker views revealed

The quarterly survey, which gathered sentiment from over 1,100 mortgage brokers in July 2025, also highlights the prevalence of higher mortgage lending following the relaxation of stress rate calculations by a number of providers, evolving views on the integration of AI into broker firms and the importance of green mortgages, providing a valuable snapshot of broker sentiment across the UK.

Key Findings from the Q2 HSBC UK Mortgage Broker Barometer:

Consumer Borrowing

Adjustments in stress rates from some providers, including HSBC UK, highlight a tangible positive impact in the amount of lending being made available to those looking to purchase or remortgage, with almost eight in ten (78%) noticing an increase in the amount of lending agreed for their clients. One in ten have seen a ‘significant’ increase in lending. Following changes to its own stress rates, HSBC UK estimated the average mortgage offer for first time buyers will be £39k higher than would previously be offered, in addition to accommodating 20k more mortgage applications.

Beyond adjustments in lending criteria, HSBC UK’s Broker Barometer also reveals a proactive stance from mortgage applicants themselves. With nine in ten (93%) of brokers saying it is important for their clients to increase their borrowing power.

Encouragingly, almost two thirds (63%) of brokers have said they are seeing clients take proactive steps to improve their credit score. This is a significant increase, up 12%, on the previous Broker Barometer, and underscores a growing consumer awareness and determination to enhance their financial standing.

Positive Outlook for Residential Mortgage application volumes; More muted for BTL

More than six in ten (63%) brokers expect residential mortgage applications to increase over the next six months. One in nine (12%) of brokers expect the volume of resi applications to significantly increase, while half (51%) of the surveyed brokers anticipate a slight increase in residential mortgage applications, marking a 13% rise in optimism compared to the previous Broker Barometer, released in April.

While there appears to be high confidence in increased volume in the resi mortgage space, confidence on Buy To Let mortgages is still evident but more muted. The majority of brokers expect Buy To Let mortgage applications to remain at the current level, mirroring the results of the first Broker Barometer, with an additional 20% of brokers expecting an increase. One quarter (25%) expect a slight decrease in BTL applications.

Growing Economic Confidence

Brokers demonstrate increased confidence in the economy looking ahead to the next 6 to 12 months. Almost eight in ten (78%) of brokers rated their confidence at 5 or above (on a scale where 10 is “extremely confident”), a notable increase from 62% in the first Broker Barometer.

Three in ten brokers (29%) feel the Bank of England’s recent Base Rate decision to maintain rates at 4.25% would have a positive impact on the mortgage market, while two thirds (66%) felt it would be neutral. Only 5% of brokers thought the decision would have a negative impact on the mortgage market.

A Bank of England Base Rate cut is highly anticipated with almost nine in ten (87%) of brokers thinking the BoE Base Rate will be reduced over the course of the year.

Broker Concerns

While brokers appear to be demonstrating increased confidence in the economy itself, mortgage rates provides the greatest concern for them, closely linked to their levels of business. Geo-politics as a concern has significantly reduced since the previous barometer survey, highlighting the effect of current political trends.

AI Adoption

With seven in ten brokers (70%) either currently integrating AI into their business or planning to in future, the Broker Barometer paints an encouraging picture of a dynamic and forward-thinking mortgage sector, with only a small proportion currently resistant to its adoption. AI’s burgeoning role among UK mortgage brokers, under-scores a strong industry-wide readiness to embrace AI, driven by its ability to enhance efficiency, refine client interactions and streamline operations.

For those firms that have already adopted AI, its applications are directly translating into tangible benefits across key areas:

• Enhanced client engagement: AI is being utilised for personalised customer communications and marketing, allowing brokers to deliver more targeted and relevant interactions, thereby strengthening client relationships.
• Driving operational efficiency: Firms are deploying AI to significantly improve internal operating efficiency, streamlining workflows and reducing manual burdens.
• Accelerating key processes: Specific high-value applications include document verification, which speeds up the crucial task of processing client paperwork with greater accuracy, and automated appointment booking, optimising scheduling and accessibility for clients.
• Expanding use cases: Beyond these core applications, brokers are also exploring AI for a range of administrative tasks, from letter writing and note-taking to bolstering their social media presence, indicating a diverse and growing appreciation for AI's versatile capabilities in a modern brokerage.

Mortgage broking as a career – Broker Happiness Index of 68

Mortgage brokers overwhelmingly expect to remain in the industry for most or all of their career, with a similar score to the previous quarter, with eight in ten feeling that way. Retirement plans and tending to align with the current state pension age of 67, with most brokers expecting to retire between the ages of 65 and 74.

The split between brokers who work weekends and those who don't is almost 50/50, a marginal difference from the first survey where 53.8% did not work weekends. There appears to be no correlation between working weekends and career contentment.

Overall, mortgage brokers seem content with their careers, with 68% scoring their happiness at seven or above, which is consistent with the previous Broker Barometer. However, the percentage of brokers scoring 10 has slightly decreased from 17% in the first study.

Green Mortgages

While only 8% of mortgage applicants are proactively seeking ‘green’ mortgages or those that recognise energy efficient homes, the amount of cashback on a green mortgage is often a deciding factor in a client applying for one, according to one quarter (25%) of brokers.

Interestingly, at this stage brokers believe residential mortgage applicants are likely to be at the forefront of the green mortgage movement, having a greater appetite for green mortgages than landlords who are looking for a mortgage, with more than double the number of brokers believing resi applicants are more interested in green mortgages than landlords wanting green mortgage options. One in three brokers (34%) say their clients are more open than before to making their own energy efficient upgrades to a property they are buying.

Commenting on the findings of the HSBC UK Broker Barometer, Chris Pearson, Head of Intermediary Mortgages at HSBC UK, said: “The recent adjustments to stress rates by lenders are clearly making a positive and tangible impact. This Broker Barometer shows that almost eight in ten brokers are seeing an uptick in the amount of lending agreed for their clients. This is a crucial development as it directly translates into enhanced buying power and greater accessibility for aspiring homeowners, reflecting a more responsive market.

“It's also encouraging to see a palpable increase in optimism among mortgage brokers, particularly in relation to the residential market and broader economic confidence. The strong expectation for a reduction in the Bank of England Base Rate signals a potential easing of pressure for borrowers and could further stimulate activity at both a market level and individual broker level. While there are a number of factors that determine mortgage rates, including international swaps rates, the Base Rate remains an important economic indicator, often being one of the main drivers of economic confidence.

“While mortgage rates are the main concern for brokers at the moment, the proactive steps clients are taking to improve credit scores and the increasing, albeit mixed, interest in green mortgages highlight a dynamic and adapting market. We remain committed to supporting brokers and their clients through these evolving times, including exploring how technology like AI can enhance efficiency and customer experience.”