Challenges in the UK Mortgage Market Drive Key Decisions Bank Boards Need to Tackle Before 2016



We are seeing some acute challenges in the UK mortgage market – retention, margin reduction, regulation, interest rate environment – just to name a few. Increasing pressure on pricing is squeezing banks’ margins causing a 'race to the bottom'.  There is a rush to grow volumes that is instigating competition in the market.

On Tuesday, 1st December, Nomis Solutions and Berkeley Research Group will present their key findings on the major challenges facing the UK mortgage market during a morning webinar broadcast. Tony Moroney of BRG, Roger Miles of BRG and I will be offering our views on the struggle that banks are facing in their attempts to retain existing mortgage customers.

An accompanying white paper will be made available to all attendees while the webinar itself will offer a chance to explore personal variations of insight and assessment of the findings. The discussion will provide you with answers to the following questions:

  • What are the key challenges facing UK lenders in today’s mortgage market?
  • What are the key trends that will determine the scale of these key challenges in the future for mortgage lenders?
  • Focusing on the increased predominance of regulations in the market, what risks must banks consider in their business models today to prevent them falling foul of the law?
  • Is the mortgage market sustainable in its current form over the next five years?


The difficult truth revealed by this research is that modern UK mortgage books are blighted by deep-set inefficiencies. In 2007, at the mortgage lending peak, to grow total net lending by £100 required lenders to advance £350. In 2014, to achieve the same net lending growth required £800 of new lending. With base rates remaining low and loan to values falling as a result of rising property prices, the start of a new era in the UK mortgage market is about to happen.

The major providers are, in essence, overlooking a cliff edge where base rates rise and re-mortgaging increases, leaving their customers free to peruse the attractive rates offered by the market’s new challenger banks. Regulators, keen to facilitate these developments in competitiveness, will be looking to encourage this in order to promote fair pricing as well as promote timely availability of relevant information.

If you are interested to discover more, please join us for a morning webinar “Winners and Losers: The challenges in the UK Mortgage market will need to be solved by decisions in the banks’ boardrooms”. Find out more here.

About The Author

Damian is a career banker with more than 25 years of experience. He spent most of his career with Bank of Ireland where he held a number of senior roles, including Head of Deposits and Current Accounts, Head of SME Banking and Head of Customer Management and Customer Analytics. At Nomis, Damian is Managing Director responsible for the APAC region.