[Report] UK Niche Mortgages Market Research, Trends, Analysis TOC

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
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
- 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
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
- 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
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
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
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
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
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
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
- 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
- Research methodology
- Relevant readings
  - UK Mortgage Market Map
    - Key Features
    - For futher information
  - European mortgage reports
  - UK mortgage reports
  - UK mortgage briefings
- 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

UK Niche Mortgages 2007

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