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UK Mortgage Holders Market Trends Report 2019

  • ID: 4846476
  • Report
  • Region: United Kingdom, Great Britain
  • 46 Pages
  • IRN Research
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  • Barclays Group
  • HSBC Group
  • Lloyds Banking Group
  • Nationwide
  • RBS Group
  • Santander
  • MORE

Existing homeowners borrowed over £180 billion in 2018 secured on their homes, representing almost 900,000 mortgages/loans. The amount borrowed rose by 5.6% in 2018, mainly reflecting a sharp rise in remortgaging and lifetime mortgage activity, with the number of mortgage advances growing by 5.2%. In 2019, the author anticipates the amounts borrowed will rise by only 2.8%, with the number of advances rising by just 1.1%

The author forecasts that by 2023 over 1 million homeowner mortgages will be taken out. Between 2018 and 2023, the number of mortgages taken out will rise by 17.8%, while the value of new advances will rise by 27.6%. This indicates a modest level of growth with the number of mortgages taken out rising at an annual average rate of 3% per year. Remortgaging activity will drive the market.

The Mortgage Holders Market Trends Report 2019 is the second edition of the report which outlines the broad mortgage trends and developments amongst homeowners who are looking to undertake one of the following: purchase a home; refinance an existing mortgage; raising other forms of finance based on the security of a home.

Key factors influencing the market are:

  • The target market is ageing – homeowners with a mortgage are getting older, opening the market for mortgages allowing homeowners to repay into their late 70s and 80s and opening the market to lifetime mortgages.
  • The housing market becomes less liquid - making it harder for existing homeowners to move home if they want to and for older homeowners to downsize to more suitable properties. This makes it harder for families to trade up to higher value properties or move to areas when property prices are higher, thereby limiting demand for larger family properties and for mortgages to purchase these homes. It also reduces the number of older couples looking to downsize (and/or downsize with a mortgage) and so limits the supply of larger family homes for up-sizers.
  • FCA action to spur innovation – the FCA is trying to promote the development of innovative information and product search tools for mortgage buyers and is considering potential changes in the lending rules to allow these to happen

The UK mortgage market has been slow to adopt new technologies. However, many in the industry now believe that an automatic, integrated (i.e. seamless) customer journey is now possible using artificial intelligence, open banking and digital ID verification technologies. This does not mean human interaction between consumer and broker or consumer and lender will be eliminated, rather it means many of the underwriting and case processing activities will be automated.

Note: Product cover images may vary from those shown
2 of 3


  • Barclays Group
  • HSBC Group
  • Lloyds Banking Group
  • Nationwide
  • RBS Group
  • Santander
  • MORE

1. Introduction

2. Executive Summary

  • A £180 billion market
  • By 2023 over 1 million mortgages will be sold each year
  • High concentration downstream
  • Market Developments and Drivers
  • Technology to play a growing role in the market

3. Market Structure

  • Five key players
  • The Customer Journey

4. Market Developments and Drivers

  • The target market picks up after over a decade of decline
  • With the target market consisting mainly of affluent, mature, middle class adults
  • With the target market getting older
  • UK housing wealth around £7.3 trillion or which £2.2 trillion is held by mortgagees
  • And housing wealth is being increasingly concentrated into the hands of older consumers
  • Who can increasingly downsize without a mortgage
  • But who also seem reluctant to release their equity
  • Possibly because it is financially comfortable to stay where you are
  • And it’s getting increasingly expensive to move
  • So, many homeowners invest to get their ideal home
  • Mortgage Market Review tightens lending criteria
  • And has possibly stifled innovation
  • FCA calls for better access to information

5. The Key Players

  • Lloyds the largest mortgage provider
  • Lloyds Banking Group
  • Nationwide
  • RBS Group
  • Santander
  • Barclays Group
  • HSBC Group

6. Market Size and Trends

  • Introduction
  • Over £180 billion lent in 2018 for all purposes
  • With traditional mortgage activity dominating the market
  • With the market shifting strongly towards remortgaging activity recently
  • Almost £850 billion owed

7. The Future

  • An uncertain future
  • Forecast assumptions
  • The Forecast
  • Technology to play a growing role in the market
  • Land Registry active in promoting digital mortgages

8. Associations

List of Figures
Figure 1 The structure of the mortgage market
Figure 2 The mortgage applicant’s customer journey
Figure 3 The number and percentage of homes in England being purchased with a mortgage, 1999-2019
Figure 4 The profile of homeowners buying their homes with a mortgage, 2018
Figure 5 The age breakdown of the HRP* in households buying with a mortgage, 2007-18
Figure 6 The number and % of households in England that are under-occupied*, 1997-98 to 2017-18
Figure 7 Mortgage freedom days, 2014-2019
Figure 8 Average moving costs 2019
Figure 9 Householder planning applications in England, year ending March 2019
Figure 10 The largest mortgage lenders (% of new mortgage advances) *,2018
Figure 11 New mortgage advances (£bn and number) to existing homeowners, 2009-2019
Figure 12 Breakdown of the total amount of new advances (£bn) to existing homeowners, 2009-2019
Figure 13 Breakdown of the number of mortgages arranged to existing homeowners, 2011-2019
Figure 14 Detailed breakdown of the number of new mortgages arranged by type of mortgage, 2011-2019
Figure 15 Detailed breakdown of gross advances by type of mortgage, 2011-2019
Figure 16 The amounts owed by homeowners by broad type of mortgage (year-end), 2009-2019
Figure 17 Detailed breakdown of amounts owed by type of mortgage, 2012-2019
Figure 18 The homeowner mortgage market 2018-2023
Figure 19 The trend in homeowner mortgages by type, 2018-2023
Figure 20 The amounts owed by homeowners, 2018-2023

Note: Product cover images may vary from those shown
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4 of 3
  • Barclays Group
  • HSBC Group
  • Lloyds Banking Group
  • Nationwide
  • RBS Group
  • Santander
Note: Product cover images may vary from those shown