Following the COVID-19 pandemic in 2020, the number of residential mortgage approvals in the UK plummeted. As the measures eased, the market rebounded, peaking at 157,000 mortgage approvals in November 2020. In 2022 and 2023, mortgage lending declined again as a response to the rising mortgage interest rates and the cooling of the housing market. In September 2024, the number of mortgage approvals exceeded 106,000 - up from about 70,500 in the same month a year ago. The increase indicated a rise in mortgage demand and an improvement in consumer sentiment.

Mortgage rates increased at a record pace in 2022, with the 10-year fixed mortgage rate doubling between March 2022 and December 2022. With inflation increasing, the Bank of England introduced several bank rate hikes, resulting in higher mortgage rates. In September 2023, the average 10-year fixed rate interest rate reached 5.1 percent. As borrowing costs get higher, demand for housing is expected to decrease, leading to declining market sentiment and slower house price growth. How have the mortgage hikes affected the market? After surging in 2021, the number of residential properties sold declined in 2022, reaching close to 1.3 million. Despite the number of transactions falling, this figure was higher than the period before the COVID-10 pandemic. The falling transaction volume also impacted mortgage borrowing. Between the first quarter of 2023 and the first quarter of 2024, the value of new mortgage loans fell year-on-year for fourth straight quarters in a row. How are higher mortgages affecting homebuyers? Homeowners with a mortgage loan usually lock in a fixed rate deal for two to ten years, meaning that after this period runs out, they need to renegotiate the terms of the loan. Many of the mortgages outstanding were taken out during the period of record-low mortgage rates and have since faced notable increases in their monthly repayment. About five million homeowners are projected to see their deal expire by the end of 2026. About two million of these loans are projected to experience a monthly payment increase of up to 199 British pounds by 2026.

The total monthly number of mortgage approvals for the purpose of a house sale in the UK plummeted in 2020 during the COVID-10 pandemic, followed by a spike in the second half of the year. In 2021, interest rates started to rise, resulting in a decline in the volume of mortgage approvals declined. In 2024, mortgage approvals for home purchases started to increase, while remortgage approvals continued to fluctuate. Being approved for a mortgage is one of the first steps in purchasing a home, which makes it an early indicator of the development of transaction volumes. However, a mortgage approval does not necessarily mean that a sale is going to take place, as home buyers need to undergo several other steps to complete the sale: conveyancing, or the process of transferring the legal title of the property from the seller to the buyer, a property survey, contracts exchange, and closing.

United Kingdom Mortgage Loans Approved: sa: Cases: HP: MFIs data was reported at 63,288.000 Unit in Oct 2018. This records an increase from the previous number of 62,550.000 Unit for Sep 2018. United Kingdom Mortgage Loans Approved: sa: Cases: HP: MFIs data is updated monthly, averaging 74,659.000 Unit from Apr 1993 (Median) to Oct 2018, with 307 observations. The data reached an all-time high of 117,923.000 Unit in Feb 2002 and a record low of 25,158.000 Unit in Nov 2008. United Kingdom Mortgage Loans Approved: sa: Cases: HP: MFIs data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB022: Mortgage Loans: Approved.

United Kingdom Mortgage Loans Approved: Cases: Remortgaging data was reported at 48,912.000 Unit in Jun 2018. This records a decrease from the previous number of 52,906.000 Unit for May 2018. United Kingdom Mortgage Loans Approved: Cases: Remortgaging data is updated monthly, averaging 41,171.000 Unit from Oct 1997 (Median) to Jun 2018, with 249 observations. The data reached an all-time high of 132,739.000 Unit in Apr 2003 and a record low of 14,338.000 Unit in Nov 1997. United Kingdom Mortgage Loans Approved: Cases: Remortgaging data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s UK – Table UK.KB022: Mortgage Loans: Approved.

United Kingdom Mortgage Loans Approved: OS: Other Loans data was reported at 19.000 GBP mn in Jun 2018. This records a decrease from the previous number of 24.000 GBP mn for May 2018. United Kingdom Mortgage Loans Approved: OS: Other Loans data is updated monthly, averaging 58.000 GBP mn from Jan 1999 (Median) to Jun 2018, with 234 observations. The data reached an all-time high of 400.000 GBP mn in Mar 2005 and a record low of 3.000 GBP mn in Jan 1999. United Kingdom Mortgage Loans Approved: OS: Other Loans data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s UK – Table UK.KB022: Mortgage Loans: Approved.

The UK’s total loan balances outstanding (including credit card balances, personal loan balances, and residential mortgage balances outstanding) recorded a compound annual growth rate (CAGR) of 3.3% during 2014-18 to reach £1,626.6bn ($2,075.6bn). The majority of loan balances outstanding are from home loans, with residential mortgage balances outstanding accounting for 86.7% of total balances in 2018, followed by personal loans (8.8%) and credit cards (4.5%). However, uncertainty on account of Brexit and its impact on the economy will affect the growth of total loan balances outstanding in the coming years. As a result, we estimate total loan balances outstanding to record a subdued CAGR of 2.7% over 2019-23. The UK lending space is dominated by Lloyds Banking Group, Barclays, and RBS Group – a trend that is anticipated to continue over the coming years. However, they may face increased competition from non-bank lenders, digital banks, and digital lending platforms breaking into the market and offering low interest rates and hassle-free loan approvals. The savings market in the UK recorded a CAGR of 3.9% over 2014-18 to reach £1,433.7bn ($1,829.4bn) in 2018. The market grew at a higher rate compared to loan balances during the five-year review period due to economic uncertainty surrounding Brexit. Read More

This statistic illustrates the quarterly number of new bank loans, including overdraft approvals to small and medium enterprises (SMEs) in the United Kingdom (UK) during the fourth quarter 2018, by sector. An enterprise is categorized as an SMEs based on their staff headcount, and their turnover or balance sheet total. Small enterprises have less than 50 employees and less than ten million euros in turnover or balance sheet total, whereas medium-sized enterprises have less than 250 employees, less than 50 million euros in turnover, or less than 43 million euros in their balance sheet total.

SMEs often rely on external financing such as loans and overdrafts. The real estate, professional services and support sector had approximately 14.3 thousand loans approved in the fourth quarter of 2018. It was also the sector with highest value of loans approved. More in-depth information could be found in the Statista dossier on small and medium enterprises financing in the UK.

This statistic illustrates the quarterly value of new bank loans approved to small and medium enterprises (SMEs) in the recreational, personal and community service activities sector in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The value of loan approvals to recreational, personal and community service activities SMEs generally increased with some fluctuation during the period observed, from 243 million British pounds in the fourth quarter of 2016 to 295 million British pounds in the fourth quarter of 2018.

United Kingdom Mortgage Loans Approved: Other Specialist Lenders (OS) data was reported at 1,417.000 GBP mn in Jun 2018. This records an increase from the previous number of 1,401.000 GBP mn for May 2018. United Kingdom Mortgage Loans Approved: Other Specialist Lenders (OS) data is updated monthly, averaging 886.000 GBP mn from Apr 1993 (Median) to Jun 2018, with 303 observations. The data reached an all-time high of 7,047.000 GBP mn in Jun 2007 and a record low of 118.000 GBP mn in Jan 1995. United Kingdom Mortgage Loans Approved: Other Specialist Lenders (OS) data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s UK – Table UK.KB022: Mortgage Loans: Approved.

This statistic illustrates the quarterly value of new bank loans approved to small and medium enterprises (SMEs) in the property-related companies buying, selling and renting own or leased real estate sector in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The value of loan approvals to SMEs in this sector generally increased with some fluctuation during the period observed, from 632 million British pounds in the fourth quarter of 2016 to 887 million British pounds in the fourth quarter of 2018.

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Personal Loans Market Size 2025-2029

The personal loans market size is forecast to increase by USD 803.4 billion, at a CAGR of 15.2% between 2024 and 2029.

The market is witnessing significant growth, driven by the adoption of advanced technologies in loan processing and the rise in the use of cloud-based personal loan servicing software offerings. These technological advancements enable faster loan processing, improved customer experience, and enhanced security. However, the market faces challenges related to regulatory compliance, with increasing regulations and scrutiny from regulatory bodies. Lenders must ensure they adhere to these regulations to maintain trust and transparency with their customers. Digitalization, including cloud computing, chatbots, big data analytics, and artificial intelligence, has transformed the market. Additionally, the market is witnessing an increase in competition, with new players entering the market and existing players offering innovative products to attract customers. Overall, the market is expected to continue its growth trajectory, driven by technological advancements and the need for flexible financing solutions.

What will be the Size of the Personal Loans Market During the Forecast Period?

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The market encompasses short-term financing solutions designed for individuals to meet their various financial needs. Employment status and credit history significantly influence borrowing limits and interest rates in this sector. Traditional balance sheet lending institutions, such as credit unions, have long dominated the market, but online loan providers have gained traction due to quick lending processes and digitalized business operations. Interest rates and borrowing limits continue to be key market drivers, with competitive insights from credit unions and online providers shaping the landscape. Employment instability and economic uncertainty have increased demand for personal loans, particularly among those with less-than-ideal credit histories.
Digitalization, including cloud computing, chatbots, big data analytics, and artificial intelligence, have transformed the market. These technologies streamline loan assessments, enabling faster approval processes and more personalized customer experiences. However, the rise of digital credit platforms also presents challenges, such as increased competition, potential bad debts, and penalties for late payments. Collateral is less common in personal loans compared to other types of loans, but awareness of digitalization and automation continues to grow. Credit cards serve as a competitive alternative for some consumers, but personal loans offer more flexibility and potentially lower interest rates for larger borrowing needs.

How is this Personal Loans Industry segmented and which is the largest segment?

The personal loans industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Short term loans
  Medium term loans
  Long term loans


Type

  P2P marketplace lending
  Balance sheet lending


Channel

  Banks
  Credit union
  Online lenders


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Application Insights

The short term loans segment is estimated to witness significant growth during the forecast period.

Personal loans have gained popularity as a flexible financing solution for individuals, particularly In the form of short-term loans. These loans cater to urgent needs, such as medical emergencies or car repairs, offering quick access to funds with shorter repayment periods, typically within a year. Unlike home or gold loans, personal loans do not require collateral, making them an accessible option for borrowers. Employment status, credit history, and borrowing limits are key factors in determining eligibility and loan amounts. The market is undergoing digital transformation, with cloud computing, chatbots, big data analytics, and artificial intelligence streamlining business operations. Fintech companies and online loan providers are disrupting traditional financial institutions, such as banks and credit unions, by offering instantaneous loan approvals and digital credit platforms.

However, challenges persist, including regulatory compliance, competition, and managing bad debts and penalties. In the competitive environment, Zopa, Startups, and other fintech companies are leveraging automation, AI technology, and credit history assessments to provide personalized loan solutions. Economic uncertainty and the increasing use of the Internet of Things have heightened aware

This statistic illustrates the quarterly value of new bank loans approved to small and medium enterprises (SMEs) in the public administration and defense sector in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The value of loan approvals to public administration and defense SMEs generally fluctuated during the period observed from, seven million British pounds in the fourth quarter of 2016 to twenty million British pounds in the fourth quarter of 2018.

United Kingdom Mortgage Loans Approved: sa: Cases data was reported at 129,388.000 Unit in Sep 2018. This records a decrease from the previous number of 132,974.000 Unit for Aug 2018. United Kingdom Mortgage Loans Approved: sa: Cases data is updated monthly, averaging 134,461.500 Unit from Oct 1997 (Median) to Sep 2018, with 252 observations. The data reached an all-time high of 371,492.000 Unit in Oct 2003 and a record low of 87,422.000 Unit in Jul 2012. United Kingdom Mortgage Loans Approved: sa: Cases data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB022: Mortgage Loans: Approved.

This statistic illustrates the quarterly value of new bank loans approved to small and medium enterprises (SMEs) in the transport, storage and communication sector in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The value of loan approvals to transport, storage and communication SMEs generally increased with some fluctuation during the period observed, from 201 million British pounds in the fourth quarter of 2016 to 275 million British pounds in the fourth quarter of 2018.

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Loan Servicing Software Market Size 2024-2028

The loan servicing software market size is forecast to increase by USD 2.7 billion at a CAGR of 12.01% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for efficiency in lending operations. Strategic partnerships and acquisitions among market participants are also driving market expansion. However, the threat from open-source loan servicing software poses a challenge to market growth. Lenders are seeking advanced solutions to streamline their operations, reduce costs, and improve customer experience. The adoption of cloud-based technologies and automation are key trends In the market. Additionally, regulatory compliance and data security are critical factors influencing market development. Overall, the market is expected to witness steady growth In the coming years, with a focus on innovation and efficiency.

What will be the Size of the Loan Servicing Software Market During the Forecast Period?

Request Free SampleThe market is experiencing significant growth due to the increasing demand for efficient loan management solutions. Technological developments, such as artificial intelligence and machine learning, are revolutionizing the industry by enabling advanced risk assessment and predictive analytics. These technologies help lenders make customized consumer credit decisions and manage the loan lifecycle from origination to collection and recovery of nonperforming loans. Cloud computing and mobile applications are also transforming the market by providing real-time data access and reducing operating expenses. Mergers and acquisitions among nontraditional lenders are driving market consolidation, leading to increased competition and price setting based on credit profiles and potential clients' needs.Blockchain technology is gaining traction for its potential to enhance security and transparency in loan servicing. Overall, the market is characterized by a focus on customer satisfaction, portfolio management, and the integration of advanced technologies to streamline operations and improve loan servicing effectiveness.

How is this Loan Servicing Software Industry segmented and which is the largest segment?

The loan servicing software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. ApplicationBanksCredit unionsMortgage lendersBrokersOthersDeploymentCloud-basedOn-premisesGeographyNorth AmericaCanadaUSEuropeUKFranceAPACJapanSouth AmericaMiddle East and Africa

By Application Insights

The banks segment is estimated to witness significant growth during the forecast period.

Loan servicing software is a crucial component of banking and financial services institutions (BFSI), facilitating the management and servicing of loan portfolios. This technology offers online interfaces on BFSI websites for loan applicants, enabling seamless digital application submission and document processing. Pre-configured workflows for credit scoring, document verification, and approvals expedite the loan application process by up to 50%. Advanced features include real-time data access, predictive analytics, and risk assessment tools to optimize loan performance and mitigate potential risks. Technological advancements, such as artificial intelligence, machine learning, blockchain, and cloud computing, enhance efficiency, user experience, and automation. Customized consumer interfaces, mobile access, and self-service portals cater to evolving customer preferences.Despite challenges, such as data security issues, integration complexities, and high implementation and maintenance costs, the benefits of loan servicing software, including improved workflow efficiency and customer service operations, far outweigh the complexities.

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The Banks segment was valued at USD 447.70 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 49% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Financial institutions in North America, including banks, credit unions, mortgage lenders, and other lending organizations, are investing in loan servicing software to enhance loan management and efficiency. With a significant presence of major banking and financial institutions like Wells Fargo, The PNC Financial Services Group, Bank of America, JPMorgan Chase, and Citigrou

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Payday Loans Market Size 2025-2029

The payday loans market size is forecast to increase by USD 9.9 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, driven by increasing awareness and acceptance among young demographics and the expanding number of lenders offering these short-term financial solutions. However, it is essential to acknowledge the controversy surrounding payday loans, with concerns regarding their high interest rates and potential for debt traps. This market's dynamic landscape presents both opportunities and challenges for stakeholders. On the one hand, the rising demand for quick and accessible credit solutions, particularly among underbanked populations, offers a lucrative business opportunity. Moreover, technological advancements have streamlined the application and approval process, making payday loans increasingly convenient for consumers. On the other hand, regulatory scrutiny and growing public awareness of the potential risks associated with payday loans necessitate careful navigation of this market. Companies seeking to capitalize on the opportunities in the market must prioritize transparency, ethical business practices, and compliance with evolving regulations to build trust and maintain a strong market position.

What will be the Size of the Payday Loans Market during the forecast period?

Request Free SampleThe market encompasses short-term, high-interest loans designed to provide immediate cash for individuals facing financial emergencies or cash shortages. This market caters to those in need of quick access to funds, often through unsecured personal loans or payday lenders. High-interest rates characterize these loans, with online loan applications streamlining the process and enabling rapid digitization. Artificial intelligence and machine learning algorithms facilitate loan decisions based on pay stubs, bank statements, and proof of income. Despite controversy surrounding high-interest rates and potential predatory lending practices, the market continues to grow. Young adults and those burdened by college debt increasingly turn to payday loans for financial relief. The industry's shift towards online platforms enhances accessibility, while borrower protection measures aim to mitigate debt pressure. The market remains a significant player in the broader consumer lending landscape, with ongoing innovation in fintech solutions and lending platforms shaping its future direction.

How is this Payday Loans Industry segmented?

The payday loans industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeStorefront payday loansOnline payday loansConsumerSingleMarriedAge Group31-4021-3051 and above41-50Less than 21GeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSouth KoreaSouth AmericaMiddle East and Africa

By Type Insights

The storefront payday loans segment is estimated to witness significant growth during the forecast period.Payday loans, also known as short-term loans, provide immediate cash for individuals facing financial emergencies or cash shortages. The market for payday loans includes both storefront lenders and online platforms. While storefront lenders allow borrowers to apply and receive approval in person, online payday loans offer a streamlined application process and increased convenience. However, consumer advocacy groups have raised concerns regarding predatory lending practices, such as high-interest rates and fees. Regulatory bodies have implemented measures like interest rate caps and limits on fees to protect consumers. The use of automated underwriting systems, artificial intelligence, and machine learning algorithms in online payday lending has expedited the loan application process and approval decisions. Traditional bank loans, with their lengthy application processes and stringent credit requirements, offer alternative financial solutions for those with limited credit history. Despite the controversy surrounding payday loans, they continue to be a popular choice for young adults and middle-aged individuals during financial crises. The market is expected to witness significant growth due to the increasing digitization of financial infrastructure and the availability of online lending platforms and digital payment methods.

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The Storefront payday loans segment was valued at USD 23.00 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 46% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and driv

United Kingdom Mortgage Loans Approved: MFIs: House Purchase data was reported at 13,884.000 GBP mn in Jun 2018. This records an increase from the previous number of 13,410.000 GBP mn for May 2018. United Kingdom Mortgage Loans Approved: MFIs: House Purchase data is updated monthly, averaging 8,957.500 GBP mn from Jan 2001 (Median) to Jun 2018, with 210 observations. The data reached an all-time high of 16,510.000 GBP mn in Jun 2006 and a record low of 2,404.000 GBP mn in Jan 2009. United Kingdom Mortgage Loans Approved: MFIs: House Purchase data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s UK – Table UK.KB022: Mortgage Loans: Approved.

This statistic illustrates the quarterly number of new bank loans approved to small and medium enterprises (SMEs) in the real estate, professional services and support activities industry that are property related companies buying, selling and renting own or leased real estate. in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The number loan approvals to property companies SMEs fluctuated during the period observed, from 2,765 approvals in the fourth quarter of 2016 to 2,656 in the fourth quarter of 2018.

This statistic illustrates the quarterly value of new bank loans approved to small and medium enterprises (SMEs) conducting business within the services industry in the United Kingdom (UK) from the fourth quarter of 2016 to the fourth quarter of 2018. The value of loan approvals to service industry SMEs generally increased with some fluctuation during the period observed from approximately 3.5 billion British pounds in the fourth quarter of 2016 to roughly 4.5 billion British pounds in the fourth quarter of 2018.