visit for more http trott tv Your Source For Knowledge Market Assessment 2012 Eighth Edition January 2012 Edited by Lucy Bishop ISBN 978 1 84729 811 9 Direct Mortgages Direct Mortgages Foreword In today s competitive business environment knowledge and understanding of your marketplace is essential With over 30 years experience producing highly respected off the shelf publications Key Note has built a reputation as the number one source of UK market information Below are just a few of the comments our business partners and clients have made on Key Note s range of reports The test of any marketing strategy and plan lies in the quality of information used upon which marketing judgments and decisions are based Quality is the key word here The Key Note reports are an excellent source of such quality information covering a wide variety of product sectors The Chartered Institute of Marketing We have enjoyed a long standing relationship with Key Note and have always received an excellent service Key Note reports are well produced and are always in demand by users of the business library Having subscribed to Market Assessment reports for a number of years we continue to be impressed by their quality and breadth of coverage The British Library The National Trust US Embassy Key Note is an invaluable resource which is reliable and easy to use With a wide range of reports it is useful for monitoring the outside world Staff are always very helpful The US Commercial Service in London has been subscribing to Key Note market research reports for over 5 years We find the reports an invaluable resource in our business counseling activities to the US companies wishing to enter the UK market with products and services The reports market data competition and forecast sections are especially useful I regard Key Note as the number one provider of UK market research The way Key Note content is packaged and presented is appealing and easy to understand and therefore a must for my taught course students Its products are complemented by remarkably high levels of customer service University of Cambridge Judge Business School Key Note Ltd 2012 Direct Mortgages Contents Contents 1 3 5 Executive Summary 1 Introduction 2 Strategy Overview BACKGROUND 3 DEFINITION 3 Market Dynamics and Segmentation 5 Economic Trends 5 Inflation 5 Table 2 1 UK Rate of Inflation 2006 2010 5 Unemployment 6 Table 2 2 Actual Number of Unemployed Persons in the UK million 2006 2010 6 Household Disposable Income 6 Table 2 3 UK Household Disposable Income Per Capita 2006 2010 7 Population 7 Table 2 4 UK Resident Population Estimates by Sex 000 Mid Years 2006 2010 7 Gross Domestic Product 8 Table 2 5 UK Gross Domestic Product at Current and Annual Chain Linked Prices m 2006 2010 9 Current Status of the Market and Consumer Trends 9 Total Industry Value and Growth 10 Table 2 6 The UK Mortgage Market by Residential Property Transactions and Gross Lending million and bn 2007 2011 10 Figure 2 1 The UK Mortgage Market by Gross Lending and Net Lending bn 2007 2011 11 Total Loans for House Purchase and Remortgage 11 Table 2 7 Loans for Home Purchase and Remortgage m and number September 2010 2011 12 Lending and Affordability 12 First Time Buyers 12 Table 2 8 UK First Time Buyers Lending and Affordability number m and September 2010 2011 13 Home Movers 14 Table 2 9 UK Home Movers Lending and Affordability number m and September 2010 2011 14 Key Note Ltd 2012 Contents Direct Mortgages Market Segmentation 15 By Type of Advance 15 By Mortgage Repayment Method First Time Buyers and Home Movers 16 DISTRIBUTION 16 Table 2 10 Number of Distribution Channels Offered by Lenders in Great Britain of lenders 2011 17 Figure 2 2 Number of Distribution Channels Offered by Lenders in Great Britain of lenders 2011 18 COMPETITIVE STRUCTURE 18 Table 2 11 Top 10 Mortgage Lenders by Rank and Gross Mortgage Lending bn 2009 and 2010 19 MARKETING AND ADVERTISING 19 Table 2 12 Main Media Advertising Expenditure on Mortgages 000 Years Ending September 2010 and 2011 20 THE CONSUMER 21 Consumer Confidence 21 Table 2 13 Nationwide Consumer Confidence Index Major Purchases Spending Index Year Ending September 2011 22 The Housing Market 22 Table 2 14 UK Arrears and Repossessions number and 2007 2011 23 Figure 2 3 UK Arrears and Repossessions number 2007 2011 24 House Prices 24 Table 2 15 UK House Prices by Region and 2010 2011 25 THE FUTURE 25 3 Types of Mortgage 27 TYPES OF MORTGAGE BY REPAYMENT METHOD 27 Repayment Mortgages 27 Overpayments 27 Interest Only Mortgages 27 Endowment Mortgages 27 ISA Mortgages 28 TYPES OF MORTGAGE BY RATE OF INTEREST 29 Discount Rate Mortgages 29 Main Media Advertising of Discount Rate Mortgages 29 Table 3 1 Main Media Advertising on Discount Rate Mortgages 000 Year Ending September 2011 29 Fixed Rate Mortgages 29 Main Media Advertising of Fixed Rate Mortgages 30 Table 3 2 Main Media Advertising Expenditure on Fixed Rate Mortgages 000 Year Ending September 2011 30 Key Note Ltd 2012 Direct Mortgages Contents Consumer Attitudes Towards Fixed Rate Mortgages 31 Capped Rate Mortgages 32 Tracker Mortgages 32 Main Media Advertising of Tracker Mortgages 32 Table 3 3 Main Media Advertising Expenditure on Tracker Mortgages 000 Year Ending September 2011 33 TYPES OF MORTGAGE BY CIRCUMSTANCES OF BORROWER 33 Mortgages for First Time Buyers 33 Consumer Attitudes Towards Fixed Rate Mortgages 34 Buy to Let Mortgages 35 Subprime Mortgages 35 Self Certified Mortgages 36 Lifetime Mortgages and Equity Release Products 36 Main Media Advertising of Equity Release Mortgages 37 Table 3 4 UK Main Media Advertising Expenditure on Equity Release Mortgages 000 Year Ending September 2011 37 OTHER TYPES OF MORTGAGE 37 Flexible Mortgages 37 Offset Account Mortgages 38 Main Media Advertising on Offset Account Mortgages 38 Table 3 5 UK Main Media Advertising Expenditure on Offset Account Mortgages 000 Year Ending September 2011 38 Islamic Mortgages 39 4 Regulation 41 43 THE FINANCIAL SERVICES AUTHORITY 41 Affordability Assessment 41 Product Regulation 42 Arrears Changes 42 5 Bank Branch and Building Society Sales BACKGROUND 43 MARKET SIZE 44 By Value 44 Table 5 1 Gross Lending Secured on Dwellings by Banks and Building Societies m and of total 2006 2010 45 Figure 5 1 Gross Lending Secured on Dwellings by Banks and Building Societies m 2006 2010 46 Banks 46 Table 5 2 Gross Lending Secured on Dwellings by Banks m and of total 2006 2009 47 Key Note Ltd 2012 Contents Direct
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