IntroductionThe UK mortgage market is ferociously competitive, with over 130 lenders vying for business.
How did lenders perform over 2005 and the first half of 2006? How is the structure of the market changing and what will it look like in the long-run? This briefing assesses the performances of the major lenders and considers a number of questions on the evolution of the market.ScopeProvides insight on how major lenders are changing their strategies.Discusses the key structural and competitive changes in the market over the last year.Incorporates primary interviews from industry experts and secondary data from a wide range of sources.HighlightsWhile 2005 was a difficult year for many lenders, the first half of 2006 saw most lenders' books increase in volume.
Yet the competitive structure of the market is changing, with investment banks staking out a greater role and the boundaries between mainstream and non-standard lending becoming more blurred.As pricing becomes more competitive, lenders' margins will be squeezed.
Lenders will look to streamline their operations, so that each step is done at the lowest cost possible.
In many instances, lenders will think about outsourcing some aspect of their mortgage processing cycle, in order to save on cost.As the competitive structure of the UK mortgage market continues to change, Datamonitor contends that consolidation will continue, some investment banks will exit the market as profitability declines in the sub-prime sector, and a number of giant or super players will dominate the mortgage market to a greater degree than at present.Reasons to PurchaseIn-depth analysis of the strategies of the major UK lenders and how they are performing.Assesses the reasons for a number of lenders' success.Understand how the market is changing and evaluate any opportunities for your business arising from these changes.