Mortgage intermediaries continue to grow their share of new lending. However, this is in the context of a shrinking UK mortgage advice market. The decline in secured lending began in 2022, gaining momentum in 2023 as higher interest rates reduced affordability. The mortgage market will remain subdued in 2024, with a steady recovery forecast in 2025. Competition between advisers will therefore intensify, raising the need for efficiencies and diversification of services.
The high cost of borrowing remains the number one threat to the mortgage advice industry. The Bank of England is widely expected to cut the official base rate this year, as inflation continues to fall. However, there is some uncertainty over the timing and extent of any cuts. Reductions in interest rates are needed to ease the pressure on borrowers refinancing their loans, and boost remortgage activity. They are also needed to improve affordability, which will help home-movers and those looking to take their first step onto the housing ladder.
Emerging mortgage advice market trends suggest that the medium-to-long term prospects are more positive, with millions aspiring to become homeowners or looking to refinance. Product development and rising consumer interest in new specialist areas, such as intergenerational, later-life and green mortgages, are also expanding opportunities for mortgage advice.
Purchase the full report for a complete overview of the UK mortgage advice market, including in-depth market dynamics, consumer insights and innovation opportunities. Readers of this report may also be interested in Mintel’s UK Mortgages Market Report.
This report is written by Sarah Hitchcock, Associate Consultant – Financial Services at Mintel. Sarah has worked for Mintel since 2001, initially as a member of the UK Financial Services team before turning freelance and taking up the role of an associate consultant. As a finance specialist, she works across the full range of UK banking, insurance, investment and pension report titles.
The downturn in mortgage lending presents an opportunity for advisers to extend the mortgage advice proposition and diversify into new areas.
Sarah Hitchcock
Associate Consultant – Financial Services
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