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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Mortgage Advice market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Mortgage lenders and intermediaries have fared well over the past few years, as government interventions have drawn greater numbers of first-time buyers into the housing market, while the growing availability and popularity of short-term deals have boosted remortgaging activity. Intermediaries have additionally benefitted from the introduction of a new requirement, ensuring that the majority of regulated mortgage sales are transacted with advice. In 2018, over 70% of regulated mortgage sales were generated by an intermediary, such as a mortgage broker, compared to around 50% in 2013.

How will the next few years fare in comparison? Looking ahead, there are clearly a number of challenges. The housing and mortgage markets face several headwinds, mainly linked to lower confidence as a result of the ongoing wrangling over Brexit. The house purchase segment is set to remain subdued, while remortgaging activity should remain strong, at least in the near term. However, given the uncertain political and economic climate, a more negative scenario cannot be ruled out.

Expert analysis from a specialist in the field

Written by Sarah Hitchcock, a leading analyst in the Financial Services sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Despite the increased risk of an economic and housing market downturn as a result of Brexit uncertainty, many UK adults have plans to arrange a mortgage, remortgage or other type of home loan in 2019. Demand for remortgaging will remain strong Sarah Hitchcock
Senior Financial Services Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Report coverage and product definitions
      • Executive Summary

          • The market
            • Intermediaries transact the lion’s share of mortgage business
              • Figure 1: Number of regulated residential mortgage sales, by sales channel, 2013-18
            • Slowdown in mortgage lending anticipated
              • Brexit delay heightens risk of a downturn
                • Regulatory update: Mortgage Market Study
                  • Companies and brands
                    • A heavily fragmented market
                      • PRIMIS is now the second-largest network, by number of ARs
                        • Countrywide is the UK’s largest broker
                          • The rise of the online broker
                            • The consumer
                              • Strong consumer appetite for home finance
                                • Figure 2: Expected mortgage-related borrowing activity over the coming year, by tenure, December 2018
                              • More mortgage borrowers prefer to do their own research than rely on an adviser
                                • Figure 3: Preferred way of arranging a mortgage/remortgage, by key target groups, December 2018
                              • Face to face is the preferred channel for mortgage advice
                                • Figure 4: Most preferred way of receiving mortgage advice, by key target groups, December 2018
                              • Low awareness of online broker brands among all homeowners
                                • Figure 5: Awareness of selected online mortgage brokers, by key target groups, December 2018
                              • Two thirds of prospective borrowers would consider using an online broker
                                • Figure 6: Consideration of online brokers and familiarity with ‘robo-advice’ concept, by key target groups, December 2018
                              • What we think
                              • Issues and Insights

                                • Mortgage advice channels viewed differently by existing mortgage holders and prospective first-time buyers
                                  • The facts
                                    • The implications
                                      • Online brokers can gain customers with the promise of free and fast services
                                        • The facts
                                          • The implications
                                          • The Market – What You Need to Know

                                            • Total mortgage lending grew by 5% in 2018
                                              • Intermediary share of new lending reached 72% in 2018
                                                • Regulator says market is working well but falls short of its vision
                                                  • Brexit delay increases the chance of market downturn
                                                  • Market Size – New Mortgage Lending

                                                    • Lenders and mortgage intermediaries see strong remortgage activity
                                                      • Figure 7: Volume of residential and buy-to-let mortgage sales, by purpose of loan, 2013-18
                                                    • Buy-to-let sees a small pick-up in sales, but pressures remain
                                                      • Remortgage business was worth £85 billion in 2018
                                                        • Figure 8: Value of residential and buy-to-let mortgage sales, by purpose of loan, 2013-18
                                                      • Market outlook: slower growth expected
                                                      • Mortgage Sales by Channel and Advice Given

                                                        • The vast majority of mortgage sales are advised…
                                                          • Figure 9: Number of regulated residential mortgage sales, by advice given, 2013-18
                                                        • …and a large and growing proportion are intermediated
                                                          • Figure 10: Number of regulated residential mortgage sales, by sales channel, 2013-18
                                                      • Market Drivers

                                                        • FCA assesses impact of MMR…
                                                          • …and believes further improvements could be made
                                                            • Industry bodies warn against putting too much focus on price alone
                                                              • Large target audience for mortgage advice
                                                                • Government intervention has helped stop the decline in home ownership
                                                                  • Increased popularity of short-term deals drives remortgage activity
                                                                    • Figure 11: When current mortgage deal is due to expire (fixed-rate mortgage holders only), December 2018
                                                                  • Brexit delay increases risk of a market downturn
                                                                    • Figure 12: Economic and housing market indicators (actual and predicted), 2018-20
                                                                  • Established brokers also face growing threat from online challengers
                                                                  • Companies and Brands – What You Need to Know

                                                                    • A heavily fragmented market
                                                                      • PRIMIS is now the second-largest network, by number of ARs
                                                                        • Countrywide is the UK’s largest mortgage broker
                                                                          • Mortgage advice is going digital
                                                                          • Market Composition and Key Players

                                                                            • 5,000 DA firms and over 14,000 ARs advise on regulated mortgage contracts
                                                                              • Largest national brokers
                                                                                • Largest networks
                                                                                  • Largest lenders
                                                                                    • Figure 13: Top 10 mortgage lenders, by gross lending, 2017
                                                                                  • Banking sector channels
                                                                                  • Digital Strategy and Innovation

                                                                                    • Lenders respond to changing customer habits with on-demand solutions
                                                                                      • L&C adopts hybrid digital proposition
                                                                                        • Who are the challenger brokers?
                                                                                          • Trussle
                                                                                            • Habito
                                                                                              • MortgageGym
                                                                                                • Mojo Mortgages
                                                                                                  • Others
                                                                                                    • What’s happened to Dynamo?
                                                                                                    • The Consumer – What You Need to Know

                                                                                                      • Strong consumer appetite for home finance
                                                                                                        • Many mortgage borrowers like to do their own research
                                                                                                          • Face to face is the preferred channel for mortgage advice
                                                                                                            • Low awareness of online broker brands among all homeowners
                                                                                                              • Two thirds of prospective borrowers would consider using an online broker
                                                                                                              • Expected Mortgage-related Activity in 2019

                                                                                                                • Around a quarter of UK adults have a mortgage
                                                                                                                  • Figure 14: Segmentation of total sample, by housing situation, December 2018
                                                                                                                • 19% of mortgage holders expect to remortgage within the next 12 months
                                                                                                                  • 8% of outright owners are planning to take out a home mover loan
                                                                                                                    • Figure 15: Expected mortgage-related borrowing activity over the coming year, by tenure, December 2018
                                                                                                                  • 22% of private renters have aspirations to take out a mortgage
                                                                                                                  • Preferred Method of Arranging a Mortgage

                                                                                                                    • More mortgage holders prefer to select a product themselves than use a broker...
                                                                                                                      • Figure 16: Preferred way of arranging a mortgage or remortgage, by key target groups, December 2018
                                                                                                                    • …but preferences are more evenly split among prospective mortgage customers
                                                                                                                      • Price comparison sites are a handy tool for those who know what they want…
                                                                                                                        • …but online brokers offer the same and more
                                                                                                                          • Most advice seekers prefer to converse face to face…
                                                                                                                              • Figure 17: Ways willing to receive mortgage advice (ranked in order of significance), by key target groups, December 2018
                                                                                                                            • …with 69% saying this is their most preferred channel
                                                                                                                              • Figure 18: Most preferred way of receiving mortgage advice (ranked in order of significance), by key target groups, December 2018
                                                                                                                          • Awareness of Online Brokers

                                                                                                                            • Awareness is limited among wider mortgage-owning population…
                                                                                                                              • Figure 19: Awareness of selected online mortgage brokers (ranked in order of most well known), by key target groups, December 2018
                                                                                                                            • …but higher among prospective remortgagors and new mortgage customers
                                                                                                                              • Trussle has work to do to catch up with rivals
                                                                                                                              • Online Advice – Assessing Attitudes and Potential

                                                                                                                                • Around two thirds of prospective applicants could be tempted to consider online brokers…
                                                                                                                                  • Figure 20: Consideration of online brokers and familiarity with ‘robo-advice’ concept, by key target groups, December 2018
                                                                                                                                • …but a third would prefer to deal with a person
                                                                                                                                • Appendix – Data Sources and Abbreviations

                                                                                                                                    • 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.

                                                                                                                                      Description