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Viewing report
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The High Value Mortgage Market in the UK
Datamonitor, July 2011, Pages: 58
Introduction
The high value mortgage market in the UK has exhibited strong growth in recent years, significantly outperforming the overall market. Lenders are becoming increasingly attracted to this sector, as it provides access to lucrative income streams, low risk borrowers, and their assets.
Features and benefits
- Measures the size of the market for high value mortgages.
- Uses results from The Global Wealth Managers Survey to assess the characteristics and behavior of high net worth consumers.
- Assesses the different strategies employed by lenders operating in the high value mortgage market.
- Describes the ways in which lenders and brokers can reach out to and service high value borrowers.
Highlights
The market for high value mortgages is growing, along with the number of high net worth individuals. Strong demand for high value properties helped to fuel a 41% increase in high value gross advances in 2010. Gross lending growth in this sector is predicted to comfortably outstrip growth in overall mortgage market over the next five years.
High net worth borrowers in the UK are an attractive target for lenders, as they possess substantial amounts of liquid assets that can be used as security. As such consumers prefer dealing with just one provider, there is a high probability that they will transfer their assets to their mortgage provider for wealth management purposes.
A variety of providers are now offering high value mortgages. Private banks are leading the way, with some focusing on providing a fully integrated and individually tailored lending and wealth management service. Mainstream providers still need to develop their offerings to accommodate the diverse needs of these borrowers.
Your key questions answered
- What strategies should you employ to attract high value borrowers?
- How big is the market for high value mortgages?
- How quickly will high value lending increase over the next few years?
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