http://trott.tvvisit for more:Your Source For KnowledgeMarket Assessment 2012Eighth Edition January 2012Edited by Lucy BishopISBN 978-1-84729-811-9Direct MortgagesIn today’s competitive business environment, knowledge and understanding of yourmarketplace is essential. With over 30 years’ experience producing highly respectedoff-the-shelf publications, Key Note has built a reputation as the number one sourceof UK market information. Below are just a few of the comments our business partnersand 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 whichmarketing judgments and decisions are based. Quality is the key word here. The Key Notereports are an excellent source of such quality information, covering a wide variety of productsectors."The Chartered Institute of Marketing"We have enjoyed a long-standing relationship with Key Note and have always received anexcellent service. Key Note reports are well produced and are always in demand by users of thebusiness library. Having subscribed to Market Assessment reports for a number of years, wecontinue to be impressed by their quality and breadth of coverage."The British Library"Key Note is an invaluable resource which is reliable and easy to use. With a wide range ofreports, it is useful for monitoring the outside world. Staff are always very helpful."The National Trust"The US Commercial Service in London has been subscribing to Key Note market researchreports for over 5 years. We find the reports an invaluable resource in our business counselingactivities to the US companies wishing to enter the UK market with products and services. Thereports’ market data, competition, and forecast sections are especially useful."US Embassy"I regard Key Note as the number one provider of UK market research. The way Key Notecontent is packaged and presented is appealing and easy to understand and therefore a mustfor my taught course students. Its products are complemented by remarkably high levels ofcustomer service."University of Cambridge, Judge Business SchoolDirect Mortgages Foreword© Key Note Ltd 2012ContentsExecutive Summary 11. Introduction 3BACKGROUND .............................................................................................................................3DEFINITION....................................................................................................................................32. Strategy Overview 5Market Dynamics and Segmentation...................................................................................5Economic Trends............................................................................................................................5Inflation...........................................................................................................................................5Table 2.1: UK Rate of Inflation (%), 2006-2010.......................................................................5Unemployment...............................................................................................................................6Table 2.2: Actual Number of Unemployed Persons in the UK (million), 2006-2010.........6Household Disposable Income ...................................................................................................6Table 2.3: UK Household Disposable Income Per Capita (£), 2006-2010............................7Population.......................................................................................................................................7Table 2.4: UK Resident Population Estimates by Sex (000), Mid-Years 2006-2010...........7Gross Domestic Product................................................................................................................8Table 2.5: UK Gross Domestic Product at Current and Annual Chain-Linked Prices(£m), 2006-2010..............................................................................................................................9Current Status of the Market and Consumer Trends..............................................................9Total Industry Value and Growth.............................................................................................10Table 2.6: The UK Mortgage Market by Residential Property Transactions and GrossLending (million and £bn), 2007-2011.....................................................................................10Figure 2.1: The UK Mortgage Market by Gross Lending and Net Lending (£bn),2007-2011......................................................................................................................................11Total Loans for House Purchase and Remortgage................................................................11Table 2.7: Loans for Home Purchase and Remortgage (£m and number), September2010-2011......................................................................................................................................12Lending and Affordability ........................................................................................................12First-Time Buyers..........................................................................................................................12Table 2.8: UK First-Time Buyers’ Lending and Affordability (number, £m, and %),September 2010-2011.................................................................................................................13Home-Movers................................................................................................................................14Table 2.9: UK Home-Movers’ Lending and Affordability(number, £m, and %), September 2010-2011........................................................................14Direct Mortgages Contents© Key Note Ltd 2012Market Segmentation.................................................................................................................15By Type of Advance.....................................................................................................................15By Mortgage Repayment Method — First-Time Buyers and Home-Movers....................16DISTRIBUTION.............................................................................................................................16Table 2.10: Number of Distribution Channels Offered by Lenders in Great Britain(% of