Table of Contents
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
Back to top