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UK Mortgage Advice market report

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 and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

What you need to know

Advised mortgages have accounted for 97% of new home loans for the last three years in a row, due to the regulatory requirement that almost all mortgage sales must include advice. As lenders struggle to meet the demand for advice, intermediary channels have grown in importance in recent years.

This is a positive development for consumers, who are now more likely to use an adviser who can advise on products from across the market, helping to ensure they get the best deal. The launch of new online advice tools is expected to improve the availability of advice further, with consumers seemingly open to using such services.

This Report examines the UK mortgage advice market. It identifies the key market drivers and shines a light on innovations in the market, focussing on the impact of technology in terms of how providers deliver advice. It explores consumer attitudes towards finding and selecting advice, and satisfaction levels with different aspects of the advice received. It also looks at consumer attitudes towards receiving advice, particularly around trust, and attitudes towards using online advice services.

Expert analysis from a specialist in the field

Written by Jessica Galletley, 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.

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

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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