Abstract
Introduction
Remortgaging activity in the UK has fallen significantly. This is a result of
the low base rate encouraging borrowers to revert to lenders' standard
variable rates rather than remortgaging. This brief looks at past activity in
the market before forecasting how remortgaging activity is likely to perform
over the next few years.
Scope of this research
- Uses Datamonitor' s proprietary Retail Banking Consumer Survey to
investigate market trends.
- Looks at how the main players are reacting to current developments in the
market.
- Provides a forecast for the remortgaging market over the period 2009-2013.
Research and analysis highlights
Remortgage gross advances plunged by almost two thirds from £34,200m in
Q3 2007 to £11,800m in Q2 2009, while the overall market declined from
£98,600m to £33,900m during the same period, largely driven by the
decline in house purchases.
The fallout from the credit crunch saw lenders retreating from heavy
competition or pulling out of the market completely. However, in the
remortgage market the large lenders have remained. The market is dominated by
big players with Lloyds Banking Group, Santander, Barclays, Nationwide, HSBC
and RBS controlling about 90% of the market.
When their special deals end, borrowers are more willing to stay on the
lender' s SVR as many of them are now below the rates offered for those
choosing to remortgage. They are no longer perceived as an uncompetitive rate
for borrowers who have not managed to organize a remortgage but are among the
best rates out there.
Key reasons to purchase this research
- Gain an insight into what your competitors are doing to deal with the
slump in the remortgaging market.
- Increase your understanding of your consumers' behaviour.
- Use Datamonitor' s market forecast to plan your future strategy with
confidence.
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