Since the start of the coronavirus (COVID-19) crisis, many businesses have had to close their doors or have struggled to pay rent. As a result, commercial property landlords suffered loss of income, leading to failure to repay mortgage loans. In 2020, the default rate of commercial real estate mortgages rose to 4.6 percent, which is the highest value observed since the global financial crisis.

United Kingdom Credit Cond: UL: L3: HH: Default Rate: Credit Card Loan data was reported at -11.200 % Point in Sep 2018. This records a decrease from the previous number of 21.100 % Point for Jun 2018. United Kingdom Credit Cond: UL: L3: HH: Default Rate: Credit Card Loan data is updated quarterly, averaging -10.300 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 61.000 % Point in Mar 2009 and a record low of -43.800 % Point in Mar 2012. United Kingdom Credit Cond: UL: L3: HH: Default Rate: Credit Card Loan 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.KB018: Credit Conditions Survey: Unsecured Lending: Last 3 Months.

Mortgage Approvals in the United Kingdom increased to 63.03 Thousand in May from 60.66 Thousand in April of 2025. This dataset provides the latest reported value for - United Kingdom Mortgage Approvals - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Most of the lending to individuals written-off by financial institutions in the United Kingdom (UK) in the last quarter of 2023 were unsecured loans. Mortgage write-offs only amounted to 27 million British pounds, a fraction of the values for credit cards and other personal loans. Nevertheless, the outstanding value of personal loans secured on dwellings was much higher than that of consumer credit.

United Kingdom Credit Cond: UL: N3: HH: Default Rate: Credit Card Loan data was reported at 2.000 % Point in Sep 2018. This records a decrease from the previous number of 15.400 % Point for Jun 2018. United Kingdom Credit Cond: UL: N3: HH: Default Rate: Credit Card Loan data is updated quarterly, averaging -0.350 % Point from Jun 2007 (Median) to Sep 2018, with 46 observations. The data reached an all-time high of 50.100 % Point in Dec 2008 and a record low of -21.700 % Point in Mar 2010. United Kingdom Credit Cond: UL: N3: HH: Default Rate: Credit Card Loan 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.KB019: Credit Conditions Survey: Unsecured Lending: Next 3 Months.

Characteristics of mortgage markets in EU countries UK included), November 2020.

The Pawn Shops industry's revenue is expected to grow at a compound annual rate of 0.2% over the five years through 2024-25 to reach £375.7 million. Weak growth in real-household disposable income raised the demand for short-term loans at the beginning of the period. The introduction of tighter lending standards for unsecured loans has also spurred strong demand for pawnbroking loans. Loans are secured against collateral, enabling pawn shops to offer more competitive interest rates than other forms of high-cost short-term credit. Retail sales are also likely to have recorded robust growth, with consumers recognising the value-for-money proposition offered by the industry. The rising cost of living and steadily increasing interest rates are leading consumers to seek alternative forms of financing beyond traditional bank loans. Inflation has not fallen in line with expectations, leading to the Bank of England continuing to hike interest rates. For consumers struggling to access a line of credit, the rising cost of borrowing makes life more difficult. Demand for loans that are not fully exposed to market conditions is on the rise. The H&T Group, a leading pawnbroker, reported that its pledge book was worth £84.2 million at the end of June 2022, up 74% year on year, without any relaxing of regulation. Demand for pawnbrokers will continue to climb in the short to medium term. Revenue is expected to grow by 2.1% in 2024-25, with average profit reaching 7.5%. Revenue is expected to grow at a compound annual rate of 2% to £414.5 million through the end of 2029-30. Although revenue is likely to drop from levels recorded during 2023-24, severe pressure on household income will support sustained demand for pawnbroking loans. UK banks are gearing up for a climb in mortgage defaults as homeowners face refinancing at consistently high borrowing costs, with Q2 2024 already showing a rise in default rates, making asset-backed loans more attractive and potentially boosting growth in pawnbroking services. Economic conditions will improve during the medium to long term, supporting renewed growth in retail demand.

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Home Equity Lending Market Size 2025-2029

The home equity lending market size is forecast to increase by USD 48.16 billion, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, fueled primarily by the massive increase in home prices and the resulting rise in residential properties with substantial equity. This trend presents a lucrative opportunity for lenders, as homeowners with substantial equity can borrow against their homes to fund various expenses, from home improvements to debt consolidation. However, this market also faces challenges. Lengthy procedures and complex regulatory requirements can hinder the growth of home equity lending, making it essential for lenders to streamline their processes and ensure compliance with evolving regulations.
Additionally, economic uncertainty and potential interest rate fluctuations may impact borrower demand, requiring lenders to adapt their strategies to remain competitive. To capitalize on market opportunities and navigate challenges effectively, lenders must focus on enhancing the borrower experience, leveraging technology to streamline processes, and maintaining a strong regulatory compliance framework.

What will be the Size of the Home Equity Lending Market during the forecast period?

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The market continues to evolve, shaped by various economic and market dynamics. Fair lending practices remain a crucial aspect, with entities ensuring borrowers' creditworthiness through rigorous risk assessments. Economic conditions, employment history, and credit score are integral components of this evaluation. Mortgage insurance (PMIs) and mortgage-backed securities (MBS) are employed to mitigate risk in the event of default. Verification of income, property value, and consumer protection are also essential elements in the home equity lending process. Housing prices, Homeowners Insurance, and property value are assessed to determine the loan-to-value ratio (LTV) and interest rate risk. Prepayment penalties, closing costs, and loan term are factors that influence borrowers' financial planning and decision-making.

The regulatory environment plays a significant role in shaping market activities. Consumer confidence, financial literacy, and foreclosure prevention initiatives are key areas of focus. real estate market volatility and mortgage rates impact the demand for home equity loans, with cash-out refinancing and debt consolidation being popular applications. Amortization schedules, mortgage broker involvement, and escrow accounts are essential components of the loan origination process. Market volatility and housing market trends continue to unfold, requiring ongoing risk assessment and adaptation.

How is this Home Equity Lending Industry segmented?

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

Source

  Mortgage and credit union
  Commercial banks
  Others


Distribution Channel

  Offline
  Online


Purpose

  Home Improvement
  Debt Consolidation
  Investment


Loan Type

  Fixed-Rate
  Variable-Rate


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The mortgage and credit union segment is estimated to witness significant growth during the forecast period.

In the realm of home equity lending, mortgage and credit unions emerge as trusted partners for consumers. These financial institutions offer various services beyond home loans, including deposit management, checking and savings accounts, and credit and debit cards. By choosing a mortgage or credit union for home equity lending, consumers gain access to human advisors who can guide them through the intricacies of finance. Mortgage and credit unions provide competitive rates on home equity loans, making them an attractive option. Consumer protection is a priority, with fair lending practices and rigorous risk assessment ensuring creditworthiness. Economic conditions, employment history, and credit score are all taken into account during the loan origination process.

Home equity loans can be used for various purposes, such as home improvement projects, debt consolidation, or cash-out refinancing. Consumer confidence plays a role in loan origination, with interest rates influenced by market volatility and economic conditions. Fixed-rate and adjustable-rate loans are available, each with its a

The ratio of non-performing loans (NLP) to total gross loans in the United Kingdom decreased to **** percent compared to the previous year. In 2022, the ratio thereby reached its lowest value in recent years. A nonperforming loan (NPL) is a loan in which the borrower is in default and has not made any scheduled payments of principal or interest for a certain period of time. Depending on the industry, a loan is considered nonperforming if the borrower is 90 or 180 days due.Find more statistics on other topics about the United Kingdom with key insights such as broad money annual growth rate, number of automated teller machines (ATMs), and number of commercial bank branches.

信用条件：UL：N3：HH：违约率：信用卡贷款在09-01-2018达2.000百分点，相较于06-01-2018的15.400百分点有所下降。信用条件：UL：N3：HH：违约率：信用卡贷款数据按季更新，06-01-2007至09-01-2018期间平均值为-0.350百分点，共46份观测结果。该数据的历史最高值出现于12-01-2008，达50.100百分点，而历史最低值则出现于03-01-2010，为-21.700百分点。CEIC提供的信用条件：UL：N3：HH：违约率：信用卡贷款数据处于定期更新的状态，数据来源于Bank of England，数据归类于全球数据库的英国 – 表 UK.KA036：信用条件调查：未担保贷款：未来3个月。

Results of stress testing for EU countries (UK included), November 2020.

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Debt Settlement Market Size 2024-2028

The debt settlement market size is forecast to increase by USD 5.07 billion at a CAGR of 10.3% between 2023 and 2028.

The market is experiencing significant growth due to the increasing trend of consumers seeking relief from mounting credit card debts. One-time debt settlement has gained popularity as an effective solution for individuals looking to reduce their outstanding debt balances. However, the time-consuming nature of negotiations between debtors and creditors poses a challenge for market expansion. Despite this, the market's strategic landscape remains favorable for companies offering debt settlement services. Key drivers include the rising number of consumers struggling with debt, increasing awareness of debt settlement as a viable debt relief option, and the growing preference for affordable and flexible debt repayment plans.
Companies seeking to capitalize on market opportunities should focus on streamlining the negotiation process, leveraging technology to enhance customer experience, and building trust and transparency with clients. Effective operational planning and strategic partnerships with creditors can also help companies navigate the challenges of a competitive and complex market.

What will be the Size of the Debt Settlement Market during the forecast period?

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The market encompasses a range of companies offering financial wellness programs to help consumers manage and reduce their debt. These programs include medical Debt collection, consumer debt relief, and financial education resources. Online financial resources and debt management software are increasingly popular, providing consumers with affordable debt solutions and debt negotiation strategies. However, it's crucial for consumers to be aware of debt settlement scams and their settlement success rates. Debt consolidation loans and financial planning tools are also viable options for responsible debt management. Furthermore, financial literacy education and workshops are essential for consumers to understand debt reduction calculators and credit reporting errors.
Consumer financial protection agencies offer financial counseling services and financial planning advice to promote financial wellness strategies and responsible borrowing. Student loan forgiveness programs are also gaining traction in the market. Overall, the market for debt settlement and financial wellness solutions continues to evolve, with a focus on providing accessible and effective debt relief options for consumers.

How is this Debt Settlement Industry segmented?

The debt settlement 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.

Type

  Credit card debt
  Student loan debt
  Medical debt
  Auto loan debt
  Unsecured personal loan debt
  Others


End-user

  Individual
  Enterprise
  Government


Distribution Channel

  Online
  Offline
  Hybrid


Service Type

  Debt Settlement
  Debt Consolidation
  Debt Management Plans
  Credit Counseling


Provider Type

  For-profit Debt Settlement Companies
  Non-profit Credit Counseling Agencies
  Law Firms
  Financial Institutions


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa



  APAC

    China
    India
    Japan
    South Korea


  South America



  Rest of World (ROW)

By Type Insights

The credit card debt segment is estimated to witness significant growth during the forecast period.

The market experiences significant activity due to the escalating credit card debt among consumers. In India, for instance, the rising financial hardships faced by borrowers are evident in the increasing credit card defaults. The latest data indicates that credit card defaults in India reached 1.8% in June 2024, a notable increase from 1.7% six months prior and 1.6% in March 2023. This trend underscores the mounting financial pressures on consumers. The outstanding credit card debt in India mirrors this trend, with approximately USD3.25 billion in outstanding balances as of June 2024, a slight increase from the previous year.

Debt elimination and negotiation strategies, such as debt relief programs and debt consolidation, have become increasingly popular among consumers seeking financial relief. Credit reporting agencies play a crucial role in this process, as they maintain and report consumers' credit histories to lenders. Student loan debt, medical debt, tax debt, and payday loans are other significant contributors to the market. Consumers often turn to debt validation, credit repair, and financial coaching for guidance in managing their debts. Online platforms, mobile apps, and budgeting tools have become

Non-performing loans are those that are in default, or are close to being in default. Many standard contract terms specify that loans become non-performing after being in default for ** days, but this can vary. All of the UK's largest banks had low ratios of non-performing loans.

Non-Performing loan coverage

The non-performing loan coverage ratio looks at a bank's ability to absorb future losses. Banks understand not every loan that they lend will be paid in full, so by predicting the rate of non-performing loans, banks can be prepared to cover these future losses. The higher the coverage ratio, the better prepared a country's banks are for such an outcome. Overall, European banks displayed relatively healthy NPL coverage ratios.