UK Mortgage Market Reports
IRN Research have published three reports on the UK mortgage market. These reports show that in 2017, existing home owners increased their gross new borrowing by almost 11%, mainly reflecting a sharp rise in remortgaging and lifetime mortgage activity, with the number of mortgages taken out growing by almost 9%. First-time buyer activity expanded at a slower rate in 2017 (but had grown much fast in 2016), with the number of First Time Buyer (FTB) mortgages taken out increasing by almost 6% and the amount borrowed riding by around 7%. The real laggards of the market were buy-to-let (BTL) mortgages. In 2017, the value of new BTL advances fell by around 12% and the market is expected to stagnate with little real growth in 2018. Also, in 2017, the number of BTL mortgages taken out fell by over 10%.
The three mortgage reports – First-Time Buyer Mortgages (37pp), Buy-to-Let Mortgages (44pp) and Existing Home Owner Mortgages (40pp) – all consider the market size and trends of their respective markets and provide forecasts up until 2022. In addition, each report looks at the structure of the market, discusses the drivers of demand, the factors changing how the market operates and key developments with the market. They also look at the main mortgage providers. The reports together provide a comprehensive overview of the UK residential mortgage sector.
The three reports (PDF) are available directly from IRN Research, priced at £250 each. UK sterling price is plus VAT so total price is £300. If two reports can be purchased for £450 (£540 inc VAT) and all three for £600 (£720).
See below for the Table of Contents for each report
IRN Research
Established in 1991, IRN Research is a market research consultancy with a particular focus on the financial services market. We offer a range of bespoke research services, on an ad-hoc and continuous basis, to finance firms and suppliers to the sector. These services include client satisfaction surveys, market studies and competitor intelligence, client industry reports, and strategic studies.
For further information on the report or our research services contact Gary Giddings on +44(0)7970829751 or ggiddings@irn-research.com. URL: www.irn-research.com
EXISTING HOME OWNERS TABLE OF CONTENTS
5 INTRODUCTION
5 Abbreviations
7 EXECUTIVE SUMMARY
7 Industry Structure and the Main Market Participants
7 Market Developments and Drivers
8 Market Size and Trends
9 The Future
10 MARKET STRUCTURE
10 Five key players
10 The Customer Journey
11 Mortgage Lenders
11 Mortgage Brokers
13 MARKET DEVELOPMENTS AND DRIVERS
13 Your target market consists mainly of affluent, mature, white couples
14 And it is getting older
15 Housing wealth is being increasingly concentrated into the hands of older consumers
15 Who can increasingly downsize without a mortgage…
15 But who also seem reluctant to release their equity
16 Possibly because it is financially comfortable to stay where you are
16 The target market is also shrinking
18 Most home owners would probably like to move…
19 Even so, it may be better to stick rather than to twist…
20 Therefore, many home owners invest to get their ideal home
21 Rising interest rates on the horizon
22 Mortgage Market Review tightens lending criteria
22 FCA calls for better access to information
24 THE KEY PLAYERS
24 Lloyds the largest mortgage provider
24 Lloyds Banking Group
25 Santander
25 Barclays Group
26 RBS Group
26 HSBC Group
26 Nationwide
27 MARKET SIZE AND TRENDS
27 Introduction
27 Almost £180 billion lent in 2017 for all purposes
28 With traditional mortgage activity dominating the market
30 With the market shifting strongly towards remortgaging activity 30 recently
32 Over £800 billion owed
35 THE FUTURE
35 An uncertain future
35Forecast assumptions
35 The Forecast
38 It will become easier to arrange a mortgage
39 ASSOCIATIONS
FIRST TIME BUYERS CONTENTS
BUY TO LET CONTENTS
INTRODUCTION
Abbreviations
6 EXECUTIVE SUMMARY
6 Industry Structure and the Main Market Participants
6 Market Developments and Drivers
6 Key Players
Market Size and Trends
7 The Future
MARKET STRUCTURE
8 Five key players
8 Not all BTL landlords are alike
9 Mortgage Lenders
10 Mortgage Brokers
11 MARKET DEVELOPMENTS AND DRIVERS
11 BTL landlords fill a gap left by the lack of housing supply
12 But are landlords pricing themselves out of the market?
13 The shine has come off the market as the Government and regulators put the boot in
16 Are BTL Landlords re-evaluating their investments?
19 With the returns on Vanilla BTL falling
23 Rising interest rates will reduce returns further
24 Most BTL landlords are not full-time professional landlords
24 Childless couples the prime target for BTL landlords
25 THE KEY PLAYERS
25 Lloyds Banking Group – the largest BTL lender
25 Lloyds Banking Group/Birmingham Midshires
26 Nationwide Building Society/The Mortgage Works
27 Royal Bank of Scotland/NatWest
28 Barclays Group
29 Coventry Building Society
29 Paragon Banking Group
29 Santander
31 MARKET SIZE AND TRENDS
31 Introduction
31 Over 2 million BLT investors
31 But a market which is now showing signs of stress
33 A market shifting towards remortgaging
34 Limited companies take around 10% of the market and it’s growing
35 FTBs now owe over £200 billion
THE FUTURE
36 An uncertain future
36 Forecast assumptions
37 The Forecast
30 Tenancies likely to grow in length
39 Technology to play a growing role in the market
42 ASSOCIATIONS