UK Mortgages 2009: Competitive Dynamics in the UK Mortgage Market

Introduction

2008 proved to be the most challenging year in recent times for UK mortgage lenders, with the year being marked by government bailouts and consolidation. While mortgage lending reached record levels in 2007, it has plummeted in 2008 and 2009 looks no brighter. With funding still a key challenge, the immediate future could still be tough for the UK market, but competition is beginning to pick up.

Scope

*Provides top ten competitor market shares in terms of gross advances and balances outstanding.

*Discusses the key competitive changes in the market over the last twelve months.

*Predicts future competitive developments based on expert opinion.

Highlights

HSBC saw its gross advances increase by just short of 70%, raising its market share from 2.8% to 6.7% in the space of one year.

Recovery in the market will only come once the base rate starts to rise significantly above its current level, which is unlikely to occur before the second half of 2010 at the earliest.

If a large player such as Tesco or Virgin did acquire Northern Rock then the challenge to the top 6 could become more significant as this would provide a more solid base to mount a major push for business.

Reasons to Purchase

*Gain insight on which major lenders are performing well in a highly competitive market.

*Learn how the market is changing and evaluate any opportunities for your business arising from these changes.

*Understand how lenders are responding in a market where liquidity is an issue.

Report Highlights

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Datamonitor consulting 21
Disclaimer 21
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List of Tables
Table 1: Two-year fixed rate products by mortgage lenders 15
Table 2: Comparison of mortgage rates, Libor and two-year swap rates. September 2008-September 2009 18
Table 3: Top 15 lenders by total mortgage lending, market shares for 2007 and 2008 19
Table 4: Top 15 lenders by total mortgages balances outstanding, market shares for 2007 and 2008 19
List of Figures
Figure 1: Gross mortgage advances fell by 30%, with only HSBC and the Bank of Ireland seeing increases 5
Figure 2: Only Bradford & Bingley saw a decline in market share among the top 10 lenders 6
Figure 3: Most large lenders increased their balances outstanding, with the exception of Northern Rock 9
Figure 4: Mortgage rates have fallen but have failed to keep up with base rate cuts 13
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