Existing home owners borrowed a total of just under 180 billion in 2017 secured on their homes. The amount borrowed rose by almost 11% in 2017, mainly reflecting a sharp rise in remortgaging and lifetime mortgage activity, with the number of mortgages advances growing by almost 9%.
Traditional residential mortgages for house purchase or remortgaging dominate the mortgage market for home owners, but lifetime mortgages, although a niche sector, are becoming more popular.
Growth in 2018 will be much lower than that of 2017 as the UK economy sees slower growth, with the level of new advances expected to rise by almost 5% and the number of mortgages by almost 4%. In 2018, it is estimated that for the first time since the worse of the financial crisis ended in 2009, the amount of money advanced for remortgaging will exceed the amount for house purchase.
Between 2017 and 2022, the number of mortgages taken out will rise by around 22%, while the value of new advances will rise by over 30%. This indicates a modest level of growth with the number of mortgages taken out rising at an annual average rate of just 4% per year. Despite the growth over 2017-2022, both the value of advances taken out and the number of mortgages arranged will be lower in 2022 than they were before the financial crisis in 2007.
By 2022, remortgages will account for around six-in-ten home owner mortgages taken out in the year and around half of the value of advances. With an aging population, the analysts are anticipating a very rapid growth in lifetime mortgages, which offer a way for older home owners to move home or raise finance.
In addition to the market size and trends, this report looks at the structure of the market for mortgages to existing home owners, discusses the drivers of demand, the factors changing how the market operates and key developments with the market. It also looks at the main mortgage providers.
- Barclays Group
- HSBC Group
- Lloyds Banking Group
- RBS Group
Key Topics Covered
2 Executive Summary
3 Market Structure
4 Market Developments & Drivers
5 The Key Players
6 Market Size & Trends
7 The Future
For more information about this report visit https://www.researchandmarkets.com/research/ldfk4x/home_owner?w=4