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Description

Description

“Consumer interest in online advice is positive, but many are unsure whether it can completely replace speaking to an adviser face-to-face. Advisers looking to launch online advice services would benefit from continuing to offer consumers choice in how they complete the advice process, such as being able to arrange a call or a face-to-face visit with an adviser.”

– Jessica Galletley, Financial Services Analyst

This report examines the following issues:

  • Attitudes of younger generations pose a problem for advice market
  • Concerns about online advice will hinder uptake
  • Trust is key to satisfaction

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Vast majority of mortgages sold on an advised basis
            • Figure 1: Distribution of regulated mortgage sales, advised versus non-advised, 2011/12-2016/17
          • Number of advised mortgage sales rises by 4%
            • Figure 2: Number of regulated mortgage sales, advised vs non-advised, 2014/15-2016/17
          • Intermediaries continue to grow in popularity
            • Figure 3: Distribution of regulated mortgage sales, direct versus intermediary, 2011/12-2016/17
          • Lending to grow by 27% by 2022
            • Figure 4: Forecast of gross mortgage lending, 2012-22
          • FCA delays investigation into the mortgage market
            • Companies and brands
              • New and existing advisers launch online advice services
                • Video call services help those in rural areas
                  • Soft searches for mortgages
                    • Lenders moving to broker only
                      • The consumer
                        • Majority feel confident finding advice
                          • Figure 5: Confidence in finding and selecting appropriate mortgage advice, December 2017
                        • Majority of direct customers go to their current account provider
                          • Figure 6: Main source of mortgage advice, December 2017
                        • 84% are satisfied with the advice they received
                          • Figure 7: Overall satisfaction with mortgage advice, December 2017
                        • Additional product recommendations are the least satisfactory aspect of advice
                          • Figure 8: ‘Any satisfied’ with different aspects of mortgage advice, December 2017
                        • Majority do their own research before speaking to an adviser
                          • Figure 9: Attitudes towards receiving mortgage advice, December 2017
                        • Most mortgage holders would consider using free online advice
                          • Figure 10: Attitudes towards online mortgage advice, December 2017
                        • What we think
                        • Issues and Insights

                          • Attitudes of younger generations pose a problem for advice market
                            • The facts
                              • The implications
                                • Concerns about online advice will hinder uptake
                                  • The facts
                                    • The implications
                                      • Trust is key to satisfaction
                                        • The facts
                                          • The implications
                                          • The Market – What You Need to Know

                                            • Vast majority of mortgages sold on an advised basis
                                              • Lending to grow by 27% by 2022
                                                • FCA delays investigation into the mortgage market
                                                • Mortgage Advice Market

                                                  • Vast majority of mortgages sold on an advised basis
                                                    • Figure 11: Distribution of regulated mortgage sales, advised versus non-advised, 2011/12-2016/17
                                                  • Number of advised mortgage sales rises by 4%
                                                    • Figure 12: Number of regulated mortgage sales, advised vs non-advised, 2014/15-2016/17
                                                  • Intermediaries continue to increase their share of the market
                                                    • Figure 13: Distribution of regulated mortgage sales, direct versus intermediary, 2011/12-2016/17
                                                    • Figure 14: Number of regulated mortgage sales, direct versus intermediary, 2014/15-2016/17
                                                • The Mortgage Market

                                                  • Growth in gross mortgage lending falls to 4%
                                                    • Figure 15: Gross mortgage lending and annual percentage change, not seasonally adjusted, 2013-17
                                                  • Lending to grow by 27% by 2022
                                                    • Figure 16: Forecast of gross mortgage lending, 2012-22
                                                • Market Drivers

                                                  • House price growth slows in 2017
                                                    • Figure 17: Annual change in average UK house prices – ONS and Nationwide house price indices, Q1 2010-Q4 2017
                                                  • Rate changes encourage people to seek advice
                                                    • Figure 18: Monthly interest rate of UK monetary financial institutions (excluding Central Bank) for 2-year fixed-rate mortgage at 75% LTV, 2-year variable-rate mortgage at 75% LTV and standard variable-rate (SVR) mortgage, January 2008-January 2018
                                                  • FCA delays investigation into the mortgage market
                                                  • Companies and Brands – What You Need to Know

                                                    • New and existing advisers launch online advice services
                                                      • Video call services help those in rural areas
                                                        • Soft searches for mortgages
                                                          • Lenders moving to broker only
                                                          • Competitive Strategies

                                                            • Technology set to transform the provision of advice
                                                              • New and existing advisers launch online advice services
                                                                • JLM Mortgage Services
                                                                  • Trussle
                                                                    • Habito
                                                                      • MortgageGym
                                                                        • Countrywide
                                                                          • Nuvo
                                                                            • Video call services help those in rural areas
                                                                              • Soft searches for mortgages
                                                                                • Lenders moving to broker only
                                                                                • The Consumer – What You Need to Know

                                                                                  • Majority feel confident finding advice
                                                                                    • Majority of direct customers go to their current account provider
                                                                                      • 84% are satisfied with the advice they received
                                                                                        • Majority do their own research before speaking to an adviser
                                                                                          • Most mortgage holders would consider using free online advice
                                                                                          • Mortgage Ownership & Home-Buying Plans

                                                                                            • One in four are buying their home using a mortgage
                                                                                              • Figure 19: Housing Situation, December 2017
                                                                                            • Home-buying expectations are optimistic
                                                                                              • Figure 20: Home buying plans for the next two years, by current housing situation, December 2017
                                                                                          • Confidence in Finding Mortgage Advice

                                                                                            • Majority feel confident finding advice
                                                                                              • Figure 21: Confidence in finding and selecting appropriate mortgage advice, December 2017
                                                                                            • Renters are equally confident
                                                                                              • Figure 22: Confidence in finding and selecting appropriate mortgage advice, by housing situation, December 2017
                                                                                            • Confidence falls the longer people are out of the market
                                                                                              • Figure 23: Confidence in finding and selecting appropriate mortgage advice, by timing of last mortgage arrangement, December 2017
                                                                                          • Main Source of Mortgage Advice

                                                                                            • Most people go to a bank or building society for advice
                                                                                              • Majority of direct customers go to their current account provider
                                                                                                  • Figure 24: Main source of mortgage advice, December 2017
                                                                                              • Overall Satisfaction with Mortgage Advice

                                                                                                • 84% are satisfied with the advice they received
                                                                                                  • Figure 25: Overall satisfaction with mortgage advice, December 2017
                                                                                              • Satisfaction with Aspects of Mortgage Advice

                                                                                                • Additional product recommendations are the least satisfactory aspect of advice
                                                                                                  • Online advice can help those without access to an adviser
                                                                                                    • Figure 26: Satisfaction with different aspects of mortgage advice, December 2017
                                                                                                  • Main banks win on satisfaction
                                                                                                    • Figure 27: Mortgage-holders who were ‘Very satisfied’ with different aspects of the latest mortgage advice they received, December 2017
                                                                                                  • The move to online advice could affect engagement and satisfaction
                                                                                                    • Figure 28: Overall satisfaction with Mortgage Advice - key driver output, December 2017
                                                                                                • Attitudes towards Receiving Mortgage Advice

                                                                                                  • Majority do their own research before speaking to an adviser
                                                                                                      • Figure 29: Attitudes towards receiving mortgage advice, December 2017
                                                                                                    • Online submissions can simplify the application process
                                                                                                      • Lack of trust means people want to feel prepared
                                                                                                        • Figure 30: Attitudes towards receiving mortgage advice, December 2017
                                                                                                      • Can online information really replace advice?
                                                                                                        • Figure 31: Attitudes towards receiving mortgage advice, by age, December 2017
                                                                                                    • Attitudes towards Online Mortgage Advice

                                                                                                      • Most mortgage holders would use free online advice…
                                                                                                        • … but making the transition easy will be key to uptake
                                                                                                            • Figure 32: Attitudes towards online mortgage advice, December 2017
                                                                                                          • Online advice is more convenient
                                                                                                            • More recent customers more likely to consider online advice
                                                                                                              • Figure 33: Attitudes towards online mortgage advice, by timing of last mortgage arranged, December 2017
                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                              • Abbreviations
                                                                                                                • Consumer research methodology

                                                                                                                About the report

                                                                                                                This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                • The Consumer

                                                                                                                  What They Want. Why They Want It.

                                                                                                                • The Competitors

                                                                                                                  Who’s Winning. How To Stay Ahead.

                                                                                                                • The Market

                                                                                                                  Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                • The Innovations

                                                                                                                  New Ideas. New Products. New Potential.

                                                                                                                • The Opportunities

                                                                                                                  Where The White Space Is. How To Make It Yours.

                                                                                                                • The Trends

                                                                                                                  What’s Shaping Demand – Today And Tomorrow.

                                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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