UK Mortgage Market 2019-2023: Gross Advances are Expected to Record a CAGR of 5%, Reaching 339 Billion by End of the Forecast Period - ResearchAndMarkets.com

The "UK Mortgage Market 2019: Forecasts and Future Opportunities to 2023" report has been added to ResearchAndMarkets.com's offering.

Summary

The outlook for the residential mortgage market remained fairly neutral in 2019. Growth in gross mortgage lending is expected to be around 4.5% in 2020, which is broadly unchanged on 2019. During the forecast period (2019-23), gross advances are expected to record a compound annual growth rate of 5%, reaching 339bn. The supply side has been positively affected by the government's schemes supporting first-time buyers, while stricter controls on buy-to-let lending will improve matters by reducing investor demand for properties. On the demand side, weak economic growth and shrinking consumer confidence will reduce the willingness of consumers to take on more debt. However, low mortgage rates, weakening house price growth, and falling unemployment will help underpin demand for borrowing. In the near term at least, we remain unconvinced that mortgage market trends will break away from the recent sluggish picture.

This report offers five-year gross lending forecasts for residential and niche mortgages until 2023, along with a detailed examination of the various demand- and supply-side factors that will determine the market outlook. It offers insight into key macroeconomic, regulatory, and other factors that will drive demand for and supply of mortgages over the next five years. It also explores the outlook for niche sectors, including buy-to-let, equity release, shared ownership, shared equity, and self-build.

Scope

• Unprecedented levels of regulation and tax intervention and a recent prohibition on letting sub-standard properties have further stifled the appeal of the buy-to-let market.
• Equity release has demonstrated significant year-on-year growth.
• The popularity of second charge finance is continuing to grow. A tighter regulatory framework will boost the second charge mortgage market by raising levels of consumer trust and confidence.
• The market for green mortgages is seemingly flat. Few providers offer the mortgage and few customers choose to bear the additional cost associated with one.

Reasons to buy

• Develop more targeted strategies through analysis of key mortgage market developments.
• Inform your future plans with our five-year forecast of gross advances for niche product lines.
• Analyze trends with details of historic gross advances across a range of specialist mortgage sectors and product types.
• Benchmark yourself against competitors and ensure you remain competitive as new innovations begin to enter the market.
• Be prepared for how regulation will impact the mortgage market over the next few years.

Key Topics Covered:

• Executive Summary
• Market Summary
• Key Findings
• Critical Success Factors
• The Mortgage Market Was Set For Slow Growth In 2019
• Supply And Demand Factors Will Combine To Deliver Sustained Growth
• Supply-Side Factors Will Ensure Stable Growth In Mortgage Availability
• Regulatory Interventions Are Reducing Confidence In The Buy-To-Let Market
• First-Time Buyers Continue To Benefit From Help To Buy
• The Mortgage Price War Has Also Provided A Boost To First-Time Buyers
• Soahp Will Continue To Support Home Ownership
• Factors Will Exert Both Upside And Downside Pressures On Demand
• Macroeconomic Factors Point Towards A Modest Increase In Demand
• Improving Consumer Confidence Will Boost Demand For Mortgages
• House Price Growth Has Been Softening Since The Middle Of 2016
• Lloyds Remains The Biggest Mortgage Lender Despite Losing Share
• The Mortgage Price War Will Continue To Squeeze The Profits Of Small Players
• Increased Competition Is Resulting In Visible Signs Of Pressure In The Uk Mortgage Market
• There Is Plenty Of Scope For Innovation In The Mortgage Market
• Molo Offers A Hassle-Free Way To Take Out A Mortgage
• Tandem Is The First Provider To Launch Intelligent, Co-Created Mortgages
• Moneysupermarket'S Podium Is An Onsite Digital Mortgage Broker
• Dashly Partnered With Castlight Financial For An Advanced Affordability Tool
• Hm Land Registry Service Enables Consumers To Sign Their Mortgage Deeds Online
• Mortgage Brain Offers Affordability Checker Tool
• Niche Mortgages Will Experience Varying Fortunes
• Buy-To-Let Activity Remains Under Pressure
• Shared Equity Will Grow At A Slower Pace Over The Next Few Years
• Shared Ownership Growth Will Be Supported By Staircasing Reforms
• Right To Buy Will Grow Moderately Over The Next Few Years
• Equity Release Is Performing Strongly At Present
• Self-Build Lending Will Remain A Niche Area For The Foreseeable Future
• The Secured Lending Market Will Accelerate At A Rapid Pace Post-2020
• Professional And Graduate Mortgage Lending Is Stagnating
• Islamic Lending Will Benefit From Improving Credit Supply And New Products
• Product Variations
• Offset Mortgage Lending Will Decline
• Large-Value Mortgage Lending Will Return To Its Pre-Crisis Peak
• Near-Prime Lending Is One Of The Fastest-Growing Sectors
• Green Mortgages: Assessing The Feasibility Of Success In The Uk
• The Uk Banking Market Offers A Range Of Green-Friendly Products
• While There Is A Standard Definition Of Green Mortgages, The Product Takes Many Different Forms
• The Market For Green Mortgages Is Still Small, And Most Green Mortgage Providers Are Small Lenders
• Green Mortgages Are Likely To Remain A Niche Product
• The Uk Mortgage Market Is Driven By Price
• There Is Limited Demand For Green Mortgages
• Very Few Lenders Offer The Product, Thus Limiting Supply And Product Choices
• The Green Proposition Is Likely To Provide A Competitive Advantage To Lenders If A Customer Has To Choose Between Two Similarly Priced Products
• Widespread Uptake Will Require Government And Institutional Commitment
• Some Incentives Have Been Put In Place, But The Market View Is That They Are Not Enough
• Realizing The Potential Of Ethical And Environmentally Friendly Products Is A Significant Opportunity For Banks
• Branches Remain The Most Popular Application Channel For Mortgage Arrangement
• Sustained Co-Operation Between Lenders And The Government Is Needed To Grow The Green Mortgage Market
• The Uk Needs To Stimulate Greater Awareness Of Green Building Among The General Public
• Appendix
• Abbreviations And Acronyms
• Definitions
• Boe Base Rate
• Gross Advances
• Remortgaging
• Methodology
• Market Sizing And Forecasts
• Future Sentiment Index
• Secondary Sources
• Further Reading

Companies Mentioned

• Al Rayan Bank
• Nationwide
• Lloyds Banking Group
• Royal Bank of Scotland
• Santander
• Nationwide
• HSBC
• Barclays
• Molo
• Tandem
• MoneySuperMarket
• Dashly
• Castlight
• Mortgage Brain

For more information about this report visit https://www.researchandmarkets.com/r/b3axpr

View source version on businesswire.com: https://www.businesswire.com/news/home/20200225005901/en/