Abstract
Introduction
The UK Mortgage Market saw unprecedented change in 2008 and early 2009, from
collapsed wholesale funding markets, to the nationalization of some of the
country' s biggest lenders. With many homeowners now struggling to keep up
repayments, house prices at record lows and lending criteria still very
strict, the market is set to tread a long and winding path before it returns
to normal.
Scope of this research
- Provides an overview of macroeconomic and other events affecting the
mortgage market in 2008 and 2009
- Analyzes in detail the impact of factors such as low base rates, falling
house prices, and rising numbers of arrears and repossessions
- Sets out Datamonitor' s forecasts for gross lending covering the period
2010-2013
Research and analysis highlights
2008 saw the onset of a severe recession and the culmination of the credit
crunch. This led to a severe and sustained fall in the availability of credit
for secured lending throughout the year. Together with a fall in demand
prompted by fears of rising unemployment, this caused gross lending to fall by
nearly 30% to about £260 billion.
First time buyers have been hard hit by the massive reduction in high LTV
mortgages in 2008 and early 2009, the supply of which has been badly affected
by the credit crunch. The few deals that are still available at the 90%+ LTV
level are being priced at much more costly rates than deals at lower LTVs.
The low base rate environment has had a major impact on both consumers' and
providers' behavior. Tracker mortgages rose markedly in popularity in late
2008 and early 2009, as borrowers sought to take advantage of a falling base
rate.
Key reasons to purchase this research
- Understand the key issues facing the mortgage market that lenders need to
address
- View details of Datamonitor' s forecasts to help plan your future strategies
- Access relevant findings from Datamonitor' s Global FS Consumer Insight and
Retail Banking surveys
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