This report covers residential mortgages in the UK. In writing this report, Mintel has questioned key lenders to verify market trends and gather in-depth information about the mortgage market. Issues affecting the mortgage market such as the impact of the Mortgage Conduct of Business (MCOB) regulations, the status of housing stock, societal changes which have resulted in a rise in the proportion of single occupancy households and the effects of a sustained low interest rate are looked at in detail.

If consumers believe that interest rates will rise, they might be attracted to fixed rate mortgage products to benefit from a few more years of steady repayments. Therefore, market trend data on fixed and variable rate deals are analysed. Remortgaging has buoyed the mortgage market over the last few years and for this reason the relative performance of this sector is explored. With a broadly declining proportion of new mortgage arrangements from the first-time buyer (FTB) group, the Market Size section looks at how lenders will need to transact business with this sector in the short-term.

Mintel commissioned consumer research in January 2006 to gauge the attitudes and behaviour of a cross-section of adults. Initially, the research established the penetration of certain types of mortgage product. Further research then gauged consumer agreement with attitudinal statements regarding their choice of mortgage provider and reasons for arranging. Finally, the report predicts which issues will affect the retail mortgage market in the future and forecasts the market in terms of new sales.