Abstract
Overview
Introduction
The saturation of the UK mainstream mortgage market and fierce competition mean that lenders are competing on wafer thin margins. Many lenders are currently looking for niche mortgage markets to enter, driven by the possibility of making bigger profits. But which niche mortgage markets are worth entering? Which ones have the greatest growth potential?
Scope
- This report is a compilation of UK niche mortgage reports published in 2006.
- Sectors covered: equity release, graduate & professional, shared ownership, self-build, large loans, bridging loans, flexible and currency mortgages.
- Provides market sizing and forecasts.
Report Highlights
Fears of mis-selling scandals are keeping IFAs away from advising equity release products. This niche sector has been beset by mis-selling scandals in the 1980s. Although the equity release market has cleaned up its image in recent years, this sector remains very much sensitive to negative press.
While mainstream lenders have a strong presence in the large loan sector, they are facing competition from private banks. This is not surprising given the characteristics of the typical large loan customer. For instance, Coutts, the international private banking arm of The Royal Bank of Scotland Group, offers mortgages to its clients.
The popularity of flexible mortgages has also been driven by lenders' efforts in raising awareness and acquiring customers. Mortgage customers are now more familiar with the flexibility concept, thanks to lenders' advertising investment. Today, most customers would expect some sort of flexibility with their mortgage.
Reasons to Purchase
- Gives you a competitive edge by providing you with a thorough analysis of various niche mortgage sectors.
- Learn about the growth potential of various niche mortgage sectors and plan your strategies accordingly.
- Learn how the competitive structure of various niche mortgage sectors is changing.
Table of Contents
- CHAPTER 1 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
- CHAPTER 2 UK EQUITY RELEASE SCHEMES 2006
- The equity release mortgage market in context
- Introduction
- Equity release schemes explained
- The equity release mortgage market stagnated in 2005
- Gross advances in the equity release mortgage market fell slightly from £1.2 billion in 2004 to £1.0 billion in 2005
- Market share of equity release gross advances stalled in 2005 but share of balances oustanding continued to grow
- 2005 aside, many factors have assisted in driving the equity release mortgage market upwards
- However, 2005 was a different story as various factors intervened to restrict expansion
- Despite stalling, the equity release mortgage market is believed to
hold significant growth potential
- Research has shown that a significant proportion of homeowners intend to use their property to boost retirement income
- The current 50 to 60 year olds hold a significant amount of equity in their home
- The landscape of the equity release mortgage market
- Introduction
- The equity release mortgage market is dominated by three players
- Mortgage Express has joined Norwich Union and Northern Rock as a leading player
- Only a few lenders entered the equity release mortgage market in 2005 despite its growth potential
- There are a number of reasons that could explain the slow appearance of mainstream lenders in the equity release mortgage sector
- But, it is likely that the equity release mortgage market will see the entry of a few leading mainstream lenders within the next couple of years
- The equity release mortgage market has become more competitive in 2005
- Average prices have fallen
- Some lenders have started cutting their arrangement fees
- Products are becoming more flexible
- However, intermediary distribution remains an issue
- There is a current shortage of qualified IFAs advising on equity release schemes
- Introduction
- Macroeconomic factors and factors specific to the equity release mortgage market are included in the forecasting model
- Under Datamonitor' s View scenario, the equity release mortgage will be worth £2.9 billion in gross advances in 2010
- Under a pessimistic view, gross advances for home reversion will grow at a faster rate than that of lifetime mortgages
- Under an optimistic view, the equity release mortgage market will reach £4.3 billion in 2010
- Conclusion
- The equity release mortgage market in context
- CHAPTER 3 UK FLEXIBLE MORTGAGES 2006
- The flexible mortgage market in context
- Introduction
- Flexible mortgages explained
- Flexibility is a popular concept in the UK
- There is no set definition for flexible mortgages within the UK mortgage industry
- Flexible mortgages have witnessed a growth in both balances
outstanding and gross advances in 2005
- New business advanced under flexible mortgages amounted to £84.5 billion in 2005
- Market share of balances outstanding for flexible mortgages rose by 2.2 percentage points in 2005
- Many factors have contributed to the popularity and expansion of
flexible mortgages
- A low base rate environment has played a role in boosting demand for flexible mortgages
- Flexible mortgages allow borrowers the opportunity to clear their mortgage debt at an earlier stage
- Flexible mortgages allow borrowers flexibility in their financial commitments
- A flexible mortgage provides a safety net against short-term unexpected life events
- Consumer awareness has increased as lenders focus on marketing the flexibility concept
- But are there any issues linked with the growth of flexible mortgages?
- Is there a danger of flexible mortgages contributing to the problem of overindebtedness?
- Do lenders find it more difficult to manage credit risk and track arrears on flexible mortgages?
- Do lenders face higher lending risks on flexible mortgages?
- Conclusion
- The competitive landscape of the flexible mortgage market
- Introduction
- A large number of lenders offer flexible mortgages
- As flexibility has become more popular, niche lenders have also adapted their product portfolio accordingly
- As the number of lenders of flexible mortgages have increased, prices
have become more competitive
- The price differential between a flexible and a non-flexible mortgage is now insignificant
- Lenders of flexible mortgages follow similar marketing strategies
- Expectedly, lenders' marketing messages stress the freedom offered by flexibility
- Creativity is relatively scarce in the flexible mortgage market
- However, how long will flexibility continue to be a differentiated feature?
- Flexibility features are also popular among intermediaries
- Flexibility is highly valued by intermediaries
- Conclusion
- Introduction
- Forecasting the flexible mortgage market
- Introduction
- Macroeconomic factors and factors specific to the flexible mortgage market are included in the forecasting model
- Under Datamonitor' s View scenario, the flexible mortgage market will be worth £130.2 billion in gross advances in 2010
- Under a pessimistic view, gross advances under flexible mortgages will fall in 2006 but will pick up slightly in 2007
- Under an optimistic view, the flexible mortgage market will grow at a CAGR of 13.9 per cent over the next five years
- Conclusion
- The flexible mortgage market in context
- CHAPTER 4 UK GRADUATE AND PROFESSIONAL MORTGAGES 2006
- Graduate and professional mortgages in context
- Introduction
- Graduate and professional mortgages explained
- Graduate and professional mortgages were launched to target young
buyers otherwise priced out of the market
- Rapid house price growth has made it difficult for first time buyers in recent years
- Graduate and professional mortgages were designed to help them get on or move up the property ladder
- The graduate and professional mortgage market is small and is hindered
by a lack of awareness
- New business amounted to just under £3.6 billion in 2005
- Graduate and professional mortgages still suffer from a lack of awareness
- Moreover, there are risks involved in lending to such customers
- Mortgages that have very high LTVs are essentially risky mortgages
- Moreover, the current economic climate means that even those with qualifications are not immune to repayment difficulties
- Conclusion
- Introduction
- The competitive dynamics of graduate and professional mortgages
- Introduction
- The graduate and professional mortgage market is served by a small
number of lenders
- At present, only five lenders offer graduate mortgages
- Meanwhile, professional mortgages are more common
- Some banks offer these mortgages as part of their portfolio for students and graduates
- Graduate and professional mortgages must compete with a large number
of other mortgages that are currently available
- There are a number of other mortgage products aimed at first time buyers and young movers
- While graduate and professional mortgages offer some product advantages, they are not highly competitive
- However, graduate and professional mortgages offer a number of product features that make them more attractive for certain customer groups
- Because they lack overall competitiveness with other standard mortgages, graduate and professional mortgages are not a favourite among FTB products
- It is therefore not surprising that these mortgages have a reputation for being marketing gimmicks
- So, how can lenders compete more successfully in this market?
- Providing real value is most important
- Marketing through the right networks is essential
- Lenders must focus on distribution through intermediaries
- Innovation is key to differentiating oneself from competitors
- Conclusion
- Forecasting graduate and professional mortgages
- Introduction
- Datamonitor uses macro-economic factors and market drivers to forecast the market
- Datamonitor forecasts three scenarios for the graduate and
professional mortgage market
- In Datamonitor' s opinion, graduate and professional mortgages will grow at a CAGR of 12.2 per cent per year over the next five years
- Under Datamonitor' s pessimistic scenario, the market will grow at a CAGR of 9.4 per cent per year to 2010
- Under Datamonitor' s optimistic scenario, the market will grow at a CAGR of 14.7 per cent over the next five years
- Graduate and professional mortgages in context
- CHAPTER 5 UK SHARED OWNERSHIP SCHEMES 2006
- Shared ownership schemes in context
- Introduction
- Shared ownership schemes have been around since the early 1980s
- Shared ownership schemes explained
- Shared ownership schemes were developed to help low-income earners get on to the property ladder
- Shared ownership schemes offer a number of advantages to would-be homeowners
- But on the whole, the shared ownership mortgage market has not taken
off
- There has been sustained demand for shared ownership but the mortgage market remains small
- A number of characteristics shape the shared ownership mortgage market
- There are a number of factors that have inhibited the growth of the
shared ownership mortgage market
- Shared ownership schemes pose a number of important disadvantages to would-be homeowners or movers
- While much improved, shared ownership mortgages continue to lack consumer awareness
- Shared ownership is not the only type of scheme for low-income earners to get on to the property ladder
- Moreover, going forward, shared equity schemes will pose a major
competitive threat to shared ownership schemes
- Shared equity schemes explained
- A very small number of shared equity mortgages have been available on a limited basis
- However, shared equity products are soon to take off
- Indeed, it is likely that shared equity mortgages will become more popular than shared ownership mortgages
- But there are a number of drawbacks to shared equity schemes
- Conclusions
- The competitive dynamics of the shared ownership mortgage market
- Introduction
- The shared ownership mortgage market is not particularly dynamic
- Building societies populate most of the market because of their mutual status
- Lenders' shared ownership mortgages are similar, if not the same as, their standard mortgage offerings
- Shared ownership mortgages pose a number of disadvantages to lenders, meaning that they have not actively pursued growth of the market
- Housing associations, rather than lenders, are pushing the shared ownership market forward
- Intermediaries dominate the distribution of shared ownership mortgages
- Roughly 80 per cent of shared ownership mortgage business is generated via the intermediary channel
- Conclusions
- Forecasting the UK shared ownership mortgage market
- Introduction
- Datamonitor uses macro-economic factors and market drivers to forecast the market
- Datamonitor forecasts three scenarios for the shared ownership
mortgage market
- Under Datamonitor' s View scenario, the shared ownership mortgage market will grow at a CAGR of 9.7 per cent per year over the next five years
- Under Datamonitor' s pessimistic scenario, the market will grow at a CAGR of 1.7 per cent per year to 2010
- Under Datamonitor' s optimistic view, the market will grow at a CAGR of 16.2 per cent over the next five years
- Shared ownership schemes in context
- CHAPTER 6 UK SELF-BUILD MORTGAGES 2006
- Self-build mortgages in context
- Introduction
- The self-build process explained
- A number of steps are involved in the self-build process
- Self-build has increased in popularity over the years
- An increasing number of individuals are embracing the self-build concept
- There were 19,400 self-builds in 2005, an increase of 4.3 per cent over 2004
- A number of factors are behind the growth in self-builds in the UK
- The self-build mortgage market was worth £1.8 billion in 2005
- Various steps were involved in sizing the the self-build mortgage market
- Datamonitor estimates that gross advances in the self-build mortgage market increased by a CAGR of 19.0 per cent from 2001 to 2005
- The self-build mortgage market has grown slightly faster than the total mortgage market in 2005
- Competitive dynamics
- Introduction
- A third of all mortgage lenders in the UK offer self-build mortgages
- The number of lenders offering self-build mortgages has stayed more or less stable
- Building societies have a greater presence in the self-build mortgage market than other player types
- Market share is scattered among lenders
- Self-build mortgages differ from conventional mortgages in the way
funds are released
- Self-build mortgages are released in stages
- Funds can be released in arrears or in advance
- A number of characteristics apply to self-build mortgages
- Self-build lenders have a strict underwriting criteria
- Other lending criteria apply
- Self-build mortgages offer similar product characteristics as conventional mortgages
- Forecasting the self-build mortgage market
- Introduction
- Three forecasting scenarios are presented
- Under Datamonitor' s View, the self-build mortgage market will reach £3.6 billion in 2010
- Under the pessimistic scenario, the self-build mortgage market will grow at a CAGR of 10.8 per cent from 2006 to 2010
- Under the optimistic scenario, the self-build mortgage market will thrive reaching £4.2 billion in 2010
- Self-build mortgages in context
- CHAPTER 7 CURRENCY MORTGAGES IN THE UK 2006
- Currency mortgages in context
- Introduction
- Currency mortgages explained
- There are basically two types of foreign currency mortgage
- The role of the currency mortgage manager is to reduce the debt
- Multi-currency loans are risky but offer a number of advantages to those customers willing to take the risks
- Currency mortgages are only suited for a niche customer group
- Customers of currency mortgages are high net worth individuals
- Unsurprisingly, the size of the multi-currency mortgage market is tiny
- Currency mortgage loans under management amounted to an estimated £0.5 billion as at the end of December 2005
- The HNW population and sales of high value properties are drivers of this niche sector
- Datamonitor expects that the size of the multi-currency mortgage
market will remain negligible over the next five years
- The managed multi-currency mortgage market will reach £2.0 billion in 2010
- The competitive landscape of the currency mortgage market
- Introduction
- Lenders operating in the currency mortgage sector are private banks
- The number of private banks offering currency mortgages is relatively small
- HSBC and Singer & Friedlander Ltd are recognized as the leading
players
- Together HSBC and Singer & Friedlander held 75 per cent of mortgage funds managed by the ECU
- Players do not generally market their products
- It is difficult to compare between competitors' products
- IFAs play a significant role in the distribution of multi-currency
mortgages
- A significant proportion of multi-currency mortgages are generated via the IFA channel
- Currency mortgages in context
- CHAPTER 8 UK LARGE MORTGAGE LOANS 2006
- The large mortgage loan market in context
- Introduction
- The number of properties worth £0.5 million and over has increased
substantially over the years
- 23,745 residential properties sold in 2005 were valued at £0.5 million and over
- Properties worth £0.5 million and over accounted for 2.6 per cent of the total stock of residential properties sold in 2005
- A number of factors have driven the sales of high value properties
- House prices have increased considerably in recent years
- The high net worth customer group is a major driver of sales of properties worth £0.5m and over
- City bonuses play an important role in the number of sales of high value properties
- Wealthy foreigners are increasingly investing in London properties
- Gross advances for house purchase in the large loan sector were worth
an estimated £7.2 billion in 2005
- Methodology used in sizing the large mortgage loan market
- Datamonitor estimates that the large loan market has grown at a CAGR of 14.6 per cent over the last five years
- The competitive dynamics of the large mortgage loan market
- Introduction
- A significant number of mortgage lenders offer large loans
- Although a large number of mortgage lenders operate in the large loan sector, maximum amount available for borrowing differs
- Moreover, all the top ten residential mortgage lenders operate in the
large loan sector
- Some lenders' large loan offerings are more flexible than others
- Halifax and Abbey offer better interest rates on their large mortgage loans
- While mainstream lenders face competition from their high street rivals, they also have to compete with private banks
- A few major factors are crucial for successfully servicing the large
loan sector
- HNW customers expect to receive a high quality of service
- Lenders need to have a strong presence among the IFA community
- Forecasting the large mortgage loan market
- Introduction
- Three forecasting scenarios are presented
- Under Datamonitor' s View, the large loan market will reach £9.5 billion in gross advances in 2010
- Under the pessimistic scenario, gross advances in the large loan market will fall significantly before picking up in 2009
- Under the optimistic scenario, the large loan sector will account for 6.9 per cent of the total house purchase mortgage market in 2010
- The large mortgage loan market in context
- CHAPTER 9 UK BRIDGING LOANS 2006
- The bridging loan market in context
- Introduction
- A bridging loan is a type of mortgage
- Bridging finance is a short-term funding method
- A bridging loan carries a number of characteristics
- Bridging finance can be used in a number of situations
- The bridging loan market is small
- Bridging finance is estimated to account for £1.2 billion in balances outstanding and £2.5 billion in gross advances
- Despite reportedly seeing significant growth, the market remains constrained by a number of factors
- Gross advances in the bridging loan sector will reach £5.6 billion in
2010
- The bridging loan sector will account for 1.7 per cent of total residential mortgage gross advances in 2010
- Competitive dynamics
- Introduction
- Specialist lenders are the dominant players in bridging finance
- Specialist lenders account for 65 per cent of new business
- Few major high street lenders operate in the bridging loan industry
- Lenders differentiate their products based on rapidity
- Many specialist lenders provide case studies to illustrate their rapid service
- Providing a fast service to intermediaries also plays an important part in lenders' strategies
- The bridging loan market in context
- CHAPTER 10 APPENDIX
- Supplementary data
- UK Equity Release Schemes 2006
- Data tables relating to section: The equity release mortgage market in context
- Data tables relating to section: The landscape of the equity release mortgage market
- UK Flexible Mortgages 2006
- Data tables relating to section: The flexible mortgage market in context
- Data tables relating to section: The competitive landscape of the flexible mortgage market
- Data tables relating to section: Forecasting the flexible mortgage market
- UK Graduate and Professional Mortgages 2006
- Data tables relating to section: Graduate and professional mortgages in context
- UK Shared Ownership Schemes 2006
- Data tables relating to section: Shared ownership schemes in context
- UK Self-build Mortgages 2006
- Data tables relating to section: Self-build mortgages in context
- Data tables relating to section: Competitive dynamics
- Currency Mortgages in the UK 2006
- Data tables relating to section: Currency mortgages in context
- UK Large Mortgage Loans 2006
- Data tables relating to section: The large mortgage loan market in context
- UK Equity Release Schemes 2006
- Definitions
- Balances outstanding
- CAGR
- Capped mortgage
- Current account mortgage (CAM)
- Equity release
- Fixed rate mortgage
- Flexible mortgage
- Graduate mortgage
- Gross advances
- Home reversion equity release plans
- Housing associations
- Independent Financial Advisors (IFAs)
- Lifetime mortgages/mortgage-backed equity release plans
- Loan-to-value (LTV)
- Mortgage intermediary
- Multi-currency mortgage
- Non-standard
- Offset mortgage (OSM)
- Professional mortgage
- Remortgaging
- Self-certification mortgage
- Variable mortgage
- Sizing and forecasting methodology
- Equity release schemes 2006
- Home equity held by 50-60 year olds in 2005
- Home equity held in 2020
- Forecasting methodology
- UK graduate and professional mortgages 2006
- Sizing methodology
- UK shared ownership schemes 2006
- Sizing methodology
- Equity release schemes 2006
- Research methodology
- Relevant readings
- UK Mortgage Market Map
- Key Features
- For futher information
- European mortgage reports
- UK mortgage reports
- UK mortgage briefings
- UK Mortgage Market Map
- Future readings
- Forthcoming mortgage reports
- Forthcoming mortgage briefings
- Datamonitor' s custom research capabilities
- SPP writing team
- List of Tables
- Table 1: Share of equity release schemes within the total secured lending sector, 2001-2005
- Table 2: Fixed rates lifetime mortgages offered by a sample of lenders, March 2004-2006
- Table 3: Forecast gross advances in the equity release mortgage market split by product type under Datamonitor' s View, 2005-2010f
- Table 4: Forecast gross advances in the equity release mortgage market split by product type under a pessimistic view, 2005-2010f
- Table 5: Forecast gross advances in the equity release mortgage market split by product type under an optimistic view, 2005-2010f
- Table 6: Use of additional funds borrowed on flexible mortgages, 2005
- Table 7: Rates applied on flexible mortgage products and traditional mortgage products for a sample of lenders, March 2006
- Table 8: Flexible mortgage gross advances under the Datamonitor' s View scenario, 2005-2010f
- Table 9: Flexible mortgage gross advances under the pessimistic scenario, 2005-2010f
- Table 10: Flexible mortgage gross advances under the optimistic scenario, 2005-2010f
- Table 11: Lenders currently offering graduate mortgages and the year they entered the market, 2006
- Table 12: Advantages and disadvantages of graduate and professional mortgages versus competing products in the UK mortgage market, 2006
- Table 13: Price and fee comparison of graduate and professional mortgages to other niche mortgage products, June 2006
- Table 14: Price and fee comparison of graduate and professional mortgages to standard mortgage products with high LTVs, June 2006
- Table 15: Graduate and professional mortgage gross advances under the Datamonitor' s View scenario, 2005-2010f
- Table 16: Graduate and professional mortgage gross advances under the pessimistic scenario, 2005-2010f
- Table 17: Graduate and professional mortgage gross advances under the optimistic scenario, 2005-2010f
- Table 18: The pros and cons of shared ownership and shared equity mortgages for homebuyers, 2006
- Table 19: Lenders offering shared ownership schemes, June 2006
- Table 20: Standard variable rates of shared ownership mortgages, July 2006
- Table 21: Shared ownership mortgage gross advances under Datamonitor' s View scenario, 2005-2010f
- Table 22: Shared ownership mortgage gross advances under the pessimistic scenario, 2005-2010f
- Table 23: Shared ownership mortgage gross advances under the optimistic scenario, 2005-2010f
- Table 24: Self-build lenders split by type of institution, June 2006
- Table 25: Stages of a build, July 2006
- Table 26: Lenders' self-build LTV criteria, June 2006 (Table 1 of 2)
- Table 27: Lenders' self-build LTV criteria, June 2006 (Table 2 of 2)
- Table 28: Forecast self-build gross advances under Datamonitor' s View scenario, 2006-2010f
- Table 29: Forecast self-build gross advances under a pessimistic scenario, 2006-2010f
- Table 30: Forecast self-build gross advances under an optimistic scenario, 2006-2010f
- Table 31: Moneyfacts' list of lenders offering foreign currency loans, June 2006
- Table 32: Examples of lenders operating in the UK multi-currency mortgage market, August 2006
- Table 33: Regional sales of properties valued at £1.0m and over, 2001-2005
- Table 34: Examples of lenders operating in the large loan sector and of lenders staying clear of this sector, June 2006
- Table 35: All major lenders in the mortgage market offer large loans, June 2006
- Table 36: A comparison of interest rates offered under large loans by top ten mortgage lenders, June 2006
- Table 37: Forecast gross advances for large loans under three scenarios, 2005-2010f
- Table 38: Examples of interest rates offered by a sample of specialist bridging loan lenders, July 2006
- Table 39: Forecast gross advances for bridging loans, 2005, 2006f-2010f
- Table 40: Only a handful of major mainstream lenders offer bridging loans, July 2006
- Table 41: Gross advances in the equity release market, 2001-2005
- Table 42: Balances outstanding in the equity release mortgage market and market share of total secured lending, 2003-2005
- Table 43: Expected further number of years of life at ages 50 and 65, 2004
- Table 44: Monthly house price growth, January to December 2005
- Table 45: Annual growth in equity release gross advances, 2001-2005
- Table 46: Average house price in the UK, 1996-2005
- Table 47: Top three equity release lenders in terms of gross advances, 2005
- Table 48: Gross advances for flexible mortgages and the total UK mortgage market, 2002-2005
- Table 49: Balances outstanding for the total mortgage market and for flexible mortgages, 2002-2005
- Table 50: Advertising spend on flexible mortgages, 2001-2005
- Table 51: Advertising spend on a sample of mortgage products, 2001-2005
- Table 52: Proportion of flexible mortgage customers who have ever taken a payment holiday, 2002-2005
- Table 53: Proportion of flexible mortgage customers who have increased their mortgage borrowing since moving to their current property, 2002-2005
- Table 54: Economic status of household reference person, 2004/2005
- Table 55: Socio-economic classification of household reference person, 2004/2005
- Table 56: Annual gross household income, 2004/2005
- Table 57: Number of flexible mortgage lenders in the UK, 2000-2006
- Table 58: Economic assumptions under Datamonitor' s View scenario, 2005-2010f
- Table 59: Economic assumptions under the pessimistic scenario, 2005-2010f
- Table 60: Economic assumptions under the optimistic scenario, 2005-2010f
- Table 61: Gross advances for graduate and professional mortgages and the total UK mortgage market, 2001-2005
- Table 62: Gross advances for first time buyer mortgage market and niche mortgages, 2005
- Table 63: Which of the following would help you most to get on the property ladder?
- Table 64: How did you decide which mortgage to take out when buying your first home?
- Table 65: Number of mortgage arrears and repossessions, 1990-2005
- Table 66: The number and percentage of those taking out shared ownership schemes by initial equity stake, 2003-2004
- Table 67: Shared ownership gross advances for house purchases and remortgaging, 2001-2005
- Table 68: Shared ownership gross advances by type of buyer, 2001-2005
- Table 69: Shared ownership gross advances split by mainstream and non-standard borrower, 2001-2005
- Table 70: Number of self-builds, 2001-2005
- Table 71: Gross advances for the self-build mortgage market, 2001-2005
- Table 72: Increases in the price of residential building land and in building costs, 2001-2005
- Table 73: Indexed gross advances for buy-to-let, self-certification and self-build, 2001-2005
- Table 74: Volume of sales by price range (residential properties), 2001-2005
- Table 75: Non-cumulative gross interest saving made by the ECU Group by switching mortgages between currencies where cost of servicing is lower, 1996-2005
- Table 76: Forecasted size of the managed multi-currency mortgage market, 2005-2010f
- Table 77: Volume of sales by price range (residential properties), 2001-2005
- Table 78: Proportion of properties worth £0.5 million out of total residential stock sold, 2001-2005
- Table 79: Standard house price by region, 2001-2005
- Table 80: Gross advances under house purchase for the large loan sector, 2001-2005
- List of Figures
- Figure 1: A number of equity release products are currently being offered by providers in the UK market, 2006
- Figure 2: Gross advances in the equity release mortgage market fell in 2005, 2001-2005
- Figure 3: Rate of growth in the equity release mortgage market slowed significantly after 2002, 2000-2005
- Figure 4: Balances outstanding in absolute value and market share in the equity release mortgage market rose further in 2005, 2003-2005
- Figure 5: Life expectancies for UK women and men aged 50 and over are increasing, 1999 to 2020
- Figure 6: The average price of a house in the UK reached £169,445 in 2005, 1996-2005
- Figure 7: House price growth has fluctuated on a monthly basis during 2005
- Figure 8: Total equity held in homes by the current 50-60 age group is forecast to reach £1.43 trillion by 2020
- Figure 9: The top three equity release mortgage providers held 83 per cent of new business advanced in 2005
- Figure 10: Fixed rates on lifetime mortgages have been falling, 2004-2006
- Figure 11: Under Datamonitor' s View, the equity release mortgage market will reach £2.9 billion in 2010, 2005-2010f
- Figure 12: Under Datamonitor' s pessimistic scenario, the equity release mortgage market will fall in 2006 and 2007 before slowly picking up, 2005-2010f
- Figure 13: Under an optimistic scenario, the equity release mortgage market will reach £4.3 billion in 2010, 2005-2010f
- Figure 14: Gross advances for flexible mortgages amounted to £84.5 billion in 2005, 2002 to 2005
- Figure 15: Gross advances for flexible mortgages have been increasing at a faster rate than gross advances for the total mortgage market, 2002-2005
- Figure 16: Similar to the total mortgage market, balances outstanding for flexible mortgages have increased steadily over the years, 2002-2005
- Figure 17: Flexible mortgages help to reduce the mortgage term by allowing overpayments, April 2006
- Figure 18: The proportion of flexible mortgage customers making use of payment holiday feature remains small, 2002-2005
- Figure 19: A significant amount of money was spent on advertising flexible mortgages in the early 2000s, 2001-2005
- Figure 20: Lenders' advertising focus has shifted to fixed rate mortgages in 2005, 2001-2005
- Figure 21: A lesser proportion of flexible mortgage customers have increased their borrowing on their current mortgage in 2005, 2002-2005
- Figure 22: A greater proportion of flexible mortgage customers are in full-time employment as opposed to the total mortgage market, 2004/2005
- Figure 23: More than 60 per cent of flexible mortgagors are in a managerial / professional / supervisory position, 2004-2005
- Figure 24: A higher proportion of flexible mortgagors falls under the annual household income band exceeding £50,000 than that of all mortgagors, 2004/2005
- Figure 25: 49 per cent of mortgage lenders currently offer flexible mortgages , March 2006
- Figure 26: The level of flexibility offered by lenders differs, March 2006
- Figure 27: 11 of the 49 listed flexible mortgage lenders fall in the most flexible group, March 2006
- Figure 28: Lenders' marketing messages are focused on the advantages of flexible mortgages
- Figure 29: Standard Life Bank' s Online Mortgage Shop www.freestylemortgages.com, May 2006
- Figure 30: Flexibility is among the most important product features from the intermediary perspective, November 2004
- Figure 31: Flexible mortgage gross advances will reach £131.2 billion in 2010 under the Datamonitor' s View scenario, 2005 - 2010f
- Figure 32: Under the pessimistic scenario, flexible mortgages will continue to increase its market share despite witnessing a fall in gross advances in 2006, 2005-2010f
- Figure 33: Flexible mortgages will account for 50.2 per cent share of the mortgage market in 2010, 2005-2010f
- Figure 34: Many of the features that graduate and professional mortgages offer are exactly what would help FTBs to get on the property ladder, 2005
- Figure 35: Gross advances for graduate and professional mortgages amounted to just under £3.6 billion in 2005, 2001 to 2005
- Figure 36: The majority of potential customers are not even aware that graduate mortgages exist, 2005
- Figure 37: The majority of first time buyers use an adviser and personal research to choose which mortgage to take out, 2005
- Figure 38: The number of properties with mortgage problems is now increasing, 1990-2005
- Figure 39: Graduate and professional mortgages accounted for a mere 4.4 per cent of the first time buyer mortgage market in terms of gross advances in 2005, 2005
- Figure 40: Graduate and professional mortgage gross advances will reach £6.7 billion in 2010 under the Datamonitor' s View scenario, 2005 - 2010f
- Figure 41: Under the pessimistic scenario, graduate and professional mortgages will continue to increase their presence in the mortgage market, 2005-2010f
- Figure 42: Graduate and professional mortgages will reach £7.9 billion in 2010, 2005-2010f
- Figure 43: The vast majority of those taking out shared ownership schemes take an initial equity stake of around 50 per cent or less, 2003-2004
- Figure 44: While properties sold by shared ownership schemes remain few, they have increased, April 2000-March 2005
- Figure 45: Gross advances for shared ownership mortgages amounted to just £517.4 million in 2005, 2001 to 2005
- Figure 46: While loans for house purchase dominate the shared ownership mortgage market, remortgaging has gradually become more important, 2001-2005
- Figure 47: First time buyers continue to dominate take up of shared ownership mortgages, however movers are gradually becoming more common, 2001-2005
- Figure 48: The shared ownership mortgage market caters almost exclusively to mainstream customers, 2001-2005
- Figure 49: While the shared ownership mortgage market has grown at a strong rate, it remains very small in comparison to other niche markets, 2001-2005
- Figure 50: Many housing associations such as Downland Housing Association actively pursue shared ownership customers by advertising, July 2006
- Figure 51: Lenders such as Preferred Mortgages have already started advertising their new range of HomeBuy mortgages, July 2006
- Figure 52: Intermediaries dominate the distribution of shared ownership mortgages, 2005
- Figure 53: Shared ownership mortgage gross advances will reach £860 million in 2010 under the Datamonitor' s View scenario, 2005 - 2010f
- Figure 54: Under the pessimistic scenario, shared ownership mortgages will see a drop in gross advances in 2006-7, before recovering, 2005-2010f
- Figure 55: Shared ownership mortgages will reach £1,156 million in 2010 under Datamonitor' s optimistic view, 2005-2010f
- Figure 56: The self-build process consists of eight basic steps
- Figure 57: Approximately two-thirds of self-builders require a mortgage to see their project through, 2006
- Figure 58: The overwhelming majority of self-builders are movers, 2005
- Figure 59: The number of self-builds in the UK has increased at an average rate of 5.3 per cent from 2001 to 2005
- Figure 60: Press articles on self-build have increased steadily over the years, 2001, 2003, 2005
- Figure 61: The self-build mortgage market was worth £1.8 billion in gross advances in 2005, 2001-2005
- Figure 62: The self-build mortgage market outpaced the total mortgage market in 2005, 2001-2005
- Figure 63: The price of residential land and building costs increased sharply over 2005, 2001 and 2005
- Figure 64: The number of lenders offering self-build has remained more or less stable, June 2002-2006
- Figure 65: 72 per cent of self-build lenders are building societies, June 2006
- Figure 66: Other niche mortgage segments such as buy-to-let and self-certification are viewed as more profitable by mainstream lenders, 2001-2005
- Figure 67: Under Datamonitor' s View scenario, gross advances in the self-build mortgage market will reach £3.6 billion in 2010, 2006-2010f
- Figure 68: Under the pessimistic scenario, self-build mortgages will outperform the total mortgage market, 2006-2010f
- Figure 69: Under the optimistic scenario, gross advances under self-build will reach £4.2 billion, 2006f-2010f
- Figure 70: The aim of the a multicurrency mortgage is to reduce the debt by switching to weakening currencies compared to sterling
- Figure 71: The ECU Group has been able to make interest savings by switching mortgages between currencies where cost of servicing is lower, 1996-2005
- Figure 72: With the exception of 2005, the number of properties sold valued at £0.5 million and above has increased steadily over the past few years, 2001-2005
- Figure 73: There were 945,600 HNW individuals in the UK in 2005, 2001-2005
- Figure 74: Datamonitor forecasts that the size of the managed multi-currency mortgage market will exceed £2.0 billion in 2010, 2005-2010f
- Figure 75: HSBC Private Bank, Singer & Friedlander and Dresdner Kleinwort Benson together hold 90 per cent of the mortgage funds managed by the ECU Group, July 2006
- Figure 76: Singer & Friedlander' s webpage on currency mortgages, August 2006
- Figure 77: 80 per cent of multi-currency mortgages come via the IFA channel
- Figure 78: With the exception of 2005, the number of properties sold valued at £0.5 million and above has increased steadily over the past few years, 2001-2005
- Figure 79: The proportion of properties sold, valued at £0.5 million and over has risen steadily to reach 2.6 per cent in 2005, 2001-2005
- Figure 80: House price increases by region, 2001 and 2005
- Figure 81: There were 945,600 HNW individuals in the UK in 2005, 2001-2005
- Figure 82: Gross advances in the large mortgage loan market amounted to £7.2 billion in 2005, 2001-2005
- Figure 83: Coutts offers a range of mortgages to its HNW clients, June 2006
- Figure 84: The great majority of large loan business is generated via the intermediary channel, namely IFAs
- Figure 85: Under the Datamonitor' s View, the large loan sector will reach £9.5 billion in gross advances for house purchase in 2010, 2006f-2010f
- Figure 86: Under the pessimistic scenario, gross advances for large loans will reach a low of £5.1 billion in 2008, 2006-2010f
- Figure 87: Under the optimistic scenario, gross advances for house purchase in the large loan sector will reach £12.1 billion in 2010, 2006f-2010f
- Figure 88: Examples of transactions where bridging loans have been involved, July 2006
- Figure 89: Cheval Property Finance' s own code of conduct, July 2006
- Figure 90: The bridging loan sector will double its market share of residential mortgage gross advances by 2010, 2006-2010f
- Figure 91: Specialist lenders control 65 per cent of the bridging finance sector
- Figure 92: Lenders' case studies focuses on how fast they can complete the bridging loan transaction, July 2006
- Figure 93: The UK Mortgage Market Map covers a wide range of mortgage sectors
- Figure 94: Mortgage sectors covered within the UK Mortgage Market Map
- Figure 95: Datamonitor' s core consulting capabilities
- Supplementary data
