|
|
 |
|
Viewing report
|
|
|
|
UK Mortgages 2010: Mortgage Funding
Datamonitor, April 2010, Pages: 44
Introduction
Before the credit crunch, the wholesale markets were an increasingly important source of funding for many mortgage providers. As a result of the collapse of these markets, mortgage supply was severely curtailed. The government intervened to underpin the market, but with plans to phase out this support over the next few years, the outlook for a significant recovery in lending looks uncertain.
Scope
-Describes the scale of the collapse in wholesale funding, and the government response to the crisis.
-Analyzes the impact of reduced funding on mortgage availability, as well as the consequences for different types of provider.
-Discusses how lenders have responded to the crisis, and also their ability to increase mortgage funding over the next few years.
Highlights
The collapse in wholesale funding had a devastating impact upon the UK mortgage market. The number of available products fell by nearly 90% peak-to-trough, with non-mainstream sectors being particularly hard-hit. Lending and credit scoring criteria were also tightened. These factors contributed to a 60% fall in gross lending between 2007 and 2009.
Banks have emerged from the crisis in a stronger position than building societies, despite their greater reliance on wholesale funding. Banks that are participating in the government support schemes have benefited from borrowing on advantageous terms, and building societies are struggling to cope with the increased competition for retail deposits.
The government was forced to adopt measures to support the mortgage market in the wake of the funding shortfall, worth over £300 billion. However, the planned withdrawal of this support over the next few years raises questions as to how the funding gap can be met, particularly as retail deposits on their own are unlikely to prove sufficient.
Reasons to Purchase
-Understand the size and scope of the impact of the funding crisis on the availability of UK mortgages.
-Identify which types of lender have emerged in a strong position from the crisis, and which are finding conditions more challenging.
-Assess possible remedies for the funding shortfall, and the prospects for a recovery in mortgage funding.
Customers who bought this item also bought
UK Mortgages 2010: Competitive Dynamics in the UK Mortgage Market
UK Mortgages 2010
UK Mortgages 2011
UK Mortgages 2010: UK Mortgage Market in 2009 and Future Outlook
UK Mortgage Market Outlook: Q2 2010
UK Mortgage Market in 2012 and Future Outlook
Direct Mortgages Market Assessment 2012
UK Mortgages 2010: Buy-to-let Mortgages and the Rental Sector
UK Mortgages 2008
UK Mortgages 2009: Competitive Dynamics in the UK Mortgage Market
|
|
|
|
