UK Mortgage Market Outlook: Updated Forecasts

Abstract

Overview

Introduction

Mid-September 2007 has seen the most dramatic fallout so far from the US sub-prime mortgage crisis, with events at Northern Rock leading to the first ' run on a bank' in the UK in over 100 years. With less funding available, what implications will the latest developments have on the performance of the UK mortgage market?

Scope

• Details Datamonitor' s latest scenario based forecasts for the future of the UK mortgage market.
• Provides 3 forecasting scenarios.

Report Highlights

Despite the Bank of England freezing the base rate at 5.75% since July 5, 2007, inter-bank borrowing costs have continued to rise due to less available funding and higher uncertainty.

The majority of UK lenders have hiked their mortgage rates, including Abbey and Bank of Scotland. Moreover, niche mortgage lenders, particularly sub-prime lenders, have raised their prices following the US sub-prime mortgage debacle.

Despite expected lower lending levels in the last few months, the fact that the mortgage market delivered a record performance in the first half of 2007 will ensure that the sector reaches a new peak in 2007.

Reasons to Purchase

• View the latest independent annual forecasts for the UK mortgage market to plan your future strategy with confidence.
• Understand the impact of reduced funding on the performance of the UK mortgage market.