Mortgage Processing Outsourcing: Feasibility for the UK Market

Table of Contents

• CATALYST
• SUMMARY
• METHODOLOGY
• ANALYSIS
  • Mortgage processing outsourcing is a growing industry in the UK
    • Mortgage processing outsourcing involves a variety of functions
      • There are a number of well-known and established MPO firms in the UK
    • There are a number of advantages that lenders can garner by outsourcing one or more of these processes
    • In 2006, mortgage processing outsourcing amounted to $218.8 million
    • Such growth is unsurprising as falling margins in the UK mortgage market has meant that MPO can serve as a key competitive differentiator for lenders
  • Yet, mortgage processing outsourcing remains a niche sector in the UK
    • A few lenders are active in this sector, however, it has not taken off substantially in the mainstream
    • Many more have stayed away because of the disadvantages associated with MPO
      • As a result, most MPO is done at the back-end of the business
      • Moreover, the FSA is going to investigate overseas outsourcing, which does not help MPOs reputation
  • But could this change in the future?
    • A competitive MPO market is developing in the UK
    • In particular, investment banks and those in the sub-prime sector have been increasingly using outsourcing
      • Will those in the sub-prime sector bring their culture to the UK mainstream market?
    • While future expansion is likely, the sector will remain a niche market in the short-term
      • Some areas of MPO will see more custom than others
• APPENDIX
  • Definitions
    • Mortgage processing outsourcing
  • Further reading
    • European mortgage reports
    • UK mortgage reports
    • UK mortgage briefings
    • Forthcoming mortgage briefings
    • UK Mortgage Market Map 2006
      • Key Features
      • For further information
  • Relevant links
  • Ask the analyst
  • List of Tables
    • Table 1: Different areas of MPO will see different rates of growth over the next few years, 2006
  • List of Figures
    • Figure 1: There are five different stages of mortgage processing that can be outsourced, 2006
    • Figure 2: The UK mortgage processing outsourcing market has grown consistently over the last five years, 2002-2006
    • Figure 3: Mortgage processing will continue to grow gradually, 2006-2008f
    • Figure 4: The UK Mortgage Market Map 2006 covers a wide range of mortgage sectors
    • Figure 5: Taxonomy of UK Mortgage Market Map 2006
    • Figure 6: Datamonitor' s core consulting capabilities