UK Mortgage Market Report

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UK Mortgage Market Report
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The report titled UK Mortgage Market 2017
Forecasts and Future Opportunities, provides a
comprehensive analysis of UK mortgage market
overview, sluggish wage growth, less consumer
spending limit, government introduced schemes,
hike in interest rates, and untouched mortgage
rates may witness a slight growth in mortgage
market in UK. Mortgage Market Overview in UK
Mortgage market offers loans to people or
organizations to purchase property which are
later traded as asset-backed securities by
financial institutions. United Kingdom has
witnessed a weak economic growth and a fall in
unemployment rate with stagnant productivity that
led to a sluggish wage growth. This has led to
consumers lower spending power and is likely to
continue in the current year with rise in
inflation. It was observed that the UK consumers
are saving less rather than borrowing and the
growth in personal deposits has slowed along with
consumer credit borrowing.
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The housing market activity is growing modestly
with the first-time buyers opting for new-build
properties using the Help to Buy equity loan
scheme. UK government has planned schemes that
aimed predominantly at first-time buyers who can
boost the number of purchases in housing market.
The government schemes are less benefitting and
majority of the consumers are struggling to find
suitable homes. Such consumers are not putting
their own homes up for sale due to less benefit.
The UK government intervention coupled with its
regulations in buy-to-let space has led to a
declined market. The remortgage category has
witnessed a strong competition and low funding
costs that meant an increasing number of
home-owners are taking advantage of the low
mortgage rates.  
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Economists Words The economists in UK are
warning that the decline in mortgage market could
be the start of a downturn in the UK housing
market. It was observed that the mortgage
approvals have declined drastically over the past
few months. UK economist at consultancy Pantheon
Macroeconomics, says that the decline in mortgage
market is due to the Bank of Englands decision
to raise the interest rates. It was estimated
that increase in the interest rates is the
biggest downtrend in the mortgage market in UK
because consumers confidence has weakened.
However, the cut in stamp duty may witness a
slight growth in the mortgage market in UK and
the price of the houses may increase. The hike in
interest rates will affect the housing market
activity but the mortgage rates are still at
historically very low levels. Therefore,
untouched mortgage rates could have any
significant effect on housing market
psychology.
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Leading Players and Future of UK Mortgage Market
The leading companies in UKs Mortgage market are
Stafford Railway Building Society and Tipton
Coseley Building Society, Al Rayan Bank,
Mortgagegym, NatWest, Secure Trust Bank, The
Mortgage Lender, Foundation Home Loans, Vida
Homeloans and Masthaven, and Pepper Homeloans. An
increased supply of new homes, stamp duty relief
for first-time buyers, and tighter controls on
buy-to-let lenders matters for first-time buyers
by reducing investor demand for properties will
witness an improvement in the mortgage market in
the UK. The political uncertainty has dampened
the countrys economy prospects. With shrinkage
in real wages, rapid growth in consumer credit
and high levels of household debt will limit the
consumers capacity to opt for higher levels of
mortgage debt over the coming years.
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below https//www.kenresearch.com/banking-financi
al-services-and-insurance/financial-services/uk-mo
rtgage-market-2017-forecasts-and-future-oppo/14269
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Marketing Communications ankur _at_
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