UK Mortgages Market Report 2022

The UK Mortgages report identifies consumer attitudes towards mortgage ownership, future mortgage intentions, and homeownership in the UK. This market report covers the market trends, market statistics, market segmentation and industry trends for the Mortgages market in the UK.

Current Market Landscape

Green mortgages have increased in profile in the last two years as lenders focus on sustainability targets in the wake of the government’s ‘net zero’ strategy and growing consumer appetite for more sustainable products and services. However, despite these broader trends, Mintel’s research shows that there is some confusion and ambivalence about using green mortgage products among mortgage owners. If providers want to tap into the increased demand for energy efficiency, they will need to increase understanding and awareness of the products, and focus more on the development of products that help people to make improvements to their homes.

• Despite 80% of mortgage owners stating that they are interested in home improvements to make their home more energy efficient, just 34% are interested in taking out a green mortgage product.
• 69% of potential first-time buyers say they already feel it’s too difficult to save for a deposit.
• 34% of non-homeowners say they plan to buy their first property with a mortgage in the next two years.

The rising cost of living will create a more defensive mindset among consumers, prompting some to delay major financial decisions, including buying a house. Rising prices also make it increasingly difficult for potential homebuyers to save for a deposit.

Future Market Trends in Mortgages

Inflation poses a major challenge to the mortgage market. Besides economic uncertainty, inflation and interest rates are intrinsically linked. The Bank of England’s base rate reached 1% in early May, and mortgage rates have also increased. This will further reduce demand among potential borrowers as mortgage costs increase. However, remortgage activity will pick up as mortgage owners seek to protect themselves with low interest rates while they are still available.

Despite these challenges, there remains considerable appetite for mortgage borrowing and home ownership. This will create plenty of opportunities for lenders to engage this group, with the challenging environment driving more demand for guidance and budgeting tools to help people achieve their goal.

Read on to discover more details or take a look at all of our UK Financial Services market research

Quickly understand

• Market performance, including a five-year market forecast.
• An analysis of competitive strategies and launch activity.
• Mortgage ownership among consumers.
• Behaviours of mortgage owners.
• Future mortgage intentions.
• Behaviours towards mortgages and homeownership.

Covered in this report

Brands: Lloyds Banking Group, Nationwide, Santander, NatWest Group, Barclays, HSBC, Virgin Money Group, Coventry Building Society, Yorkshire Building Society, TSB, Habito, Cumberland Building Society, Bank Of Scotland, First Direct, Og Enterprises.

Expert analysis from a specialist in the field

This report, written by Stefania Apostol, a leading analyst in the Financial Services sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

2021 was the strongest year for mortgage lending since the financial crisis, but 2022 is set to be more challenging. The rising cost of living is already feeding through into lower consumer confidence, which will increase reluctance to commit to major financial decisions, including buying or moving a house. Increases in the base rate will translate into higher mortgage rates, which will reduce demand as potential buyers face higher mortgage costs. However, non-homeowners continue to show a strong appetite for homeownership, suggesting demand will remain high in the coming years.

Stefania Apostol
Financial Services Analyst