What you need to know

While the mortgage market was veritably derailed by the COVID-19 outbreak in March 2020, there is much to suggest that it will return stronger than ever in the coming years. Although many consumers have suffered severely in financial terms from the lockdowns and other restrictions, the majority have not. Most consumers describe their finances as either healthy or OK, while there is broad optimism as to what the coming 12 months will bring and evident pent-up demand for mortgage loans. Until this comes to pass, however, the market - which contracted by more than 2% in 2020 and will likely contract by almost as much in 2021 - will be dependent on remortgaging activity.

Key issues covered in this Report

  • The impact of COVID-19 on consumer confidence and finances with regard to mortgages.

  • Market drivers and dynamics in the mortgage sector.

  • Mortgage ownership and the types of mortgages owned.

  • When consumers' mortgage deals are due to expire and their intentions after expiry

  • Where consumers typically obtain advice when taking out a mortgage.

  • Mortgage behaviour and concerns, including affordability.

Products covered in this Report

This Report includes discussion of residential mortgages used for the following reasons:

  • House purchase: the loan is used to purchase a property.

  • Remortgage: where a mortgage borrower redeems his/her existing mortgage with their current lender and takes out a new mortgage on the same property.

  • Further advance: a form of additional borrowing offered by lenders to their existing mortgage customers for the purposes of home improvements or to buy a car etc. By taking out a further advance, a borrower is increasing their overall mortgage debt with the lender.

For the purposes of this Report, Mintel has used the following definitions of mortgage interest rates:

  • Fixed rate: the interest payments are fixed for a set period of time, after which the borrower will be moved on to another rate, such as the lender’s standard variable rate.

  • Standard variable rate (SVR): the interest varies with the lender’s mortgage rate.

  • Tracker rate: the interest rate moves up or down by tracking an external rate, such as the Bank of England base.

  • Discounted rate: the interest rate varies with the lender’s SVR, but the rate is also discounted for a set period of time.

Issues covered in this Report

This Report examines the mortgage industry in NI and RoI. It analyses the main factors determining supply and demand for mortgage loans. Drawing on exclusive consumer data, it analyses levels of ownership among consumers of mortgages, the types of mortgages owned, when mortgage deals are due to expire, what consumers intend doing when their deals expire, where consumers obtained advice when they last arranged a mortgage, and general mortgage-related behaviour and attitudes.

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