Introduction
The advent of the credit crunch has dealt a big blow to the UK mortgage market. Indeed, the current market is one of high uncertainty, with falling house prices and significantly lower transaction volumes. How much will the UK mortgage market account for by the end of 2008 and beyond?
Scope of this research
- Provides five-year forecasts of gross advances under three scenarios.
- Provides forecasts by product lines.
- Analyzes industry trends in 2007 and looks at challenges facing the UK mortgage market going forward.
Research and analysis highlights
September 2007 was the turning point for the UK mortgage market, when the credit crunch cumulated into the collapse of the third biggest UK mortgage lender, Northern Rock. Nonetheless, it was not until November 2007, that the effects of the liquidity squeeze started to feed through gross lending.
Due to the continuous lack of liquidity, lenders continue to rationalize lending, focusing on good quality business. With lesser appetite for riskier lending, lenders have significantly raised the level of deposit required from mortgage customers.
Lower availability of credit, squeezing consumer spending power and rising mortgage interest rates have all combined to significantly affect mortgage loan approvals. However, it is loans for house purchase and 'other' which are struggling rather than remortgaging.
Key reasons to purchase this research
- View Datamonitor's latest independent annual forecasts for the UK mortgage market to plan your future strategies with confidence.
- Understand the key market challenges facing lenders in the future.