The UK’s Dismal Mortgage Market

Here’s a press release:

2007 proved to be one of the most challenging years in recent times for UK mortgage lenders, as the later part of 2007 saw the mortgage sector being marred by liquidity issues. While mortgage lending reached record levels in 2007, it is expected to fall significantly in 2008. Who will be the winners and losers of the most difficult year of the UK mortgage market in the last decade?
Scope
– Provides top ten competitor market shares in terms of gross advances and balances outstanding.
– Provides market share over the period 2001 to 2007.
– Discusses the key competitive changes in the market over the last twelve months.
Highlights of this title
The biggest UK mortgage lender has steadily been losing share over the last seven years. The lender held nearly a quarter of total gross lending in 2001. This figure was down to 19.9% by 2007.
Most major lenders attributed their 2007 good results to a mixture of competitive pricing and good retention strategies.
With fewer products available on the market and consumer demand remaining strong, the dynamics are changing. Lenders are currently in a position where they can charge higher prices without this affecting demand.
Key reasons to purchase this title
– 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.
Key Topics Covered:
– Most top 10 mortgage lenders grew their business over a record 2007 mortgage market
– Nationwide recorded the biggest growth in gross lending among the top 10 mortgage lenders
– HBOS focus shift to profitability rather than volume has seen the lender lose share over the years
– All top 10 mortgage lenders increased their mortgage balances over 2007
– Competitive pricing and good retention strategies are behind lenders 2007 success
– The credit crunch is changing the competitive landscape of the UK mortgage market
– The number of mortgage lenders operating in the UK market has declined over the space of a year
– Small building societies continue to dominate in terms of number
– The liquidity squeeze is leading to higher margins
– While the major lenders have increased the rates on their two-year fixed rates, SVRs have gone down
– Lenders who are willing to compete on prices will increase their market share
– HSBC extended its Rate Matcher service to non-HSBC customers
– Abbey capitalized on strong funding position and increased its gross lending market share in Q1 2008
– Nationwide has re-priced its short-term fixed rate mortgages to make them more attractive
– There will be a number of changes in movements of mortgage lenders market share in 2008
– Northern Rocks nationalization means that it can not compete on a level footing with other lenders
– Lenders focus will continue to remain on profitability and retention
– Gone are the days of mass customer acquisition
– Retention is the word

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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