Introduction

The sub-prime mortgage market has come a long way since its beginnings, emerging as a significant niche segment in the UK mortgage market. The sub-prime mortgage market continues its expansion with yet another good year in 2006. However, market dynamics are becoming more difficult and lenders need to monitor its ongoing challenges.

Scope

Sizes the UK sub-prime mortgage market and presents scenario-based five year forecasts. Provides market share data for the major competitors in the sub-prime mortgage market. Gives insight into the future challenges of the market and how lenders could respond.

Highlights

The sub-prime mortgage market experienced another strong year of growth in 2006, expanding by 28 per cent in gross advances on the previous year's level. While the sub-prime mortgage population has fallen as a whole over the last five years, it has been growing since 2004, which has helped to boost the market. The near-prime sector is currently the fastest growing segment of the sub-prime mortgage market. In fact, whereas around five years ago the majority of the market was for medium and heavily credit impaired individuals, the market has now altered. Moreover, many lenders that cater to both segments have experienced a shift to lower risk volumes. As the market becomes increasingly saturated, lenders will need to look at new ways of staying competitive. Indeed, lenders will need to look to differentiation, and cost efficiency and funding will become crucial to overall success. Moreover, as the market becomes increasingly saturated, many lenders will look to expand into European markets.

Reasons to Purchase

Understand how the market is changing and where the new opportunities lie. Gives you a competitive edge by providing you with a thorough analysis of the UK sub-prime mortgage market. Draw on five-year scenario-based forecasts to plan your future strategy with confidence.