UK Mortgage Intermediary Distribution 2007 (Distribution Dynamics)

Introduction

The current credit squeeze is creating a difficult mortgage market for UK intermediaries. While they remain the major channel of distribution, the liquidity crisis is having a negative impact on their business and has brought about new challenges. This report analyzes the impact of the credit crunch on the intermediary mortgage channel and provides an outlook for the future.

Scope

Quantifies the share of the intermediary channel in the UK mortgage market and provides distribution splits for a sample of lenders.

Draws upon Datamonitor's mortgage intermediary survey to understand intermediaries attitudes in the market and their views of various issues.

Gives insight into the challenges facing the intermediary mortgage channel.

Provides forecasts of gross advances in the UK mortgage market and forecasts of intermediary share.

Report Highlights

The credit crunch seems to have led to a shift in the balance of power between networks and lenders. The resulting lack of funding and market uncertainty brought about by the US sub-prime mortgage market meltdown has impacted negatively on the supply of mortgages.

Due to the credit crunch, packagers are once again being viewed by many as the weakest link in the mortgage intermediary distribution channel and are thus most likely to feel the brunt of the credit crunch to a greater extent than the other player types.

As lenders’ margins on mortgages have decreased due to fierce competition, the level of commission paid to brokers has come under threat. In fact, the commission-based income of mortgage intermediaries can be very volatile, as highlighted by the potential significant fall in brokers’ revenue from the liquidity crisis.

Reasons to Purchase

Understand the impact of the credit crunch on the intermediary channel and how lenders are adjusting their distribution strategies.

Gives the reader insight into the views of intermediaries in a variety of areas across the market such as commission levels.

Use Datamonitor's forecasts of the UK mortgage market and intermediary channel to plan your future distribution strategy with confidence.