In 2023, the largest share of mortgage sales in the UK was remortgage products, followed by first-time buyer sales. Of the total number of mortgage sales that year, remortgage products totaled almost ******* and first-time buyer mortgages, *******. A remortgage is when a new mortgage is taken out for the process of paying off a previous mortgage. In this case, the new property is used as security on the new mortgage.

The mortgage market in the UK declined in 2023, with the value of mortgage lending plummeting by nearly *** billion British pounds from the previous year. That was because of the dramatic increase in mortgage interest, which increased the cost of borrowing. In 2024, gross lending to individuals picked up slightly, reaching ****** billion British pounds.

The number of first-time buyer mortgage sales, by UK local authority, collected by the Financial Conduct Authority (FCA).

Mortgage lending in the UK declined in 2023, with falling by 33 percent year-on-year in the second quarter of the year. In the second quarter of 2024, the value of new mortgage advances increased annually for the first time since the final quarter of 2024, reaching nearly 60.2 billion British pounds. That indicated an uptick in mortgage demand, possibly due to the much anticipated mortgage interest rate cuts.

In 2023, the number of mortgage sales in the UK stood at just over ******* for the year. This was the lowest figure on record. The majority of these mortgages were taken out via an intermediary, with a median loan-to-value ranging from ** percent to ** percent, depending on the region.

The outlook for the residential mortgage market remained fairly neutral in 2019. Growth in gross mortgage lending is expected to be around 4.5% in 2020, which is broadly unchanged on 2019. During the forecast period (2019-23), gross advances are expected to record a compound annual growth rate of 5%, reaching £339bn. The supply side has been positively affected by the government’s schemes supporting first-time buyers, while stricter controls on buy-to-let lending will improve matters by reducing investor demand for properties. Read More

The European mortgage and loan broker market is booming, projected to reach €17 billion by 2033 with an 8.12% CAGR. Discover key trends, regional breakdowns, and leading companies shaping this dynamic sector. Find out how online platforms and increased financial literacy are driving growth. Recent developments include: January 2023: OneDome, a UK end-to-end challenger, acquired CMME Mortgage and Protection Ltd. from CMME Group for an undisclosed sum. The acquisition, which involves the integration of CMME Mortgages 65-person team into OneDome, will enable OneDome to dramatically expand its mortgage brokerage capability and support its online clients., June 2023: Barclays (BARC.L) has agreed to buy specialty lender Kensington Mortgage Company for approximately 2.3 billion pounds ($2.8 billion), boosting its presence in the UK property sector.. Notable trends are: The Housing Market's Expansion Drives Up Demand for Mortgage Brokers.

Discover the booming European mortgage & loan broker market! Our analysis reveals an €8.79B market in 2025, projected to grow at 8.12% CAGR until 2033. Explore key drivers, trends, and top players like Lloyds Banking Group and HSBC. Get insights into regional market shares and future growth potential. Recent developments include: January 2023: OneDome, a UK end-to-end challenger, acquired CMME Mortgage and Protection Ltd. from CMME Group for an undisclosed sum. The acquisition, which involves the integration of CMME Mortgages 65-person team into OneDome, will enable OneDome to dramatically expand its mortgage brokerage capability and support its online clients., June 2023: Barclays (BARC.L) has agreed to buy specialty lender Kensington Mortgage Company for approximately 2.3 billion pounds ($2.8 billion), boosting its presence in the UK property sector.. Notable trends are: The Housing Market's Expansion Drives Up Demand for Mortgage Brokers.

Discover the booming UK mortgage & loan broker market! Our in-depth analysis reveals a £2.88 billion market in 2025, projected to grow at 9.6% CAGR until 2033. Explore key trends, regional insights, and leading companies shaping this dynamic sector. Recent developments include: In October 2023, Deutsche Bank AG announced the completion of its acquisition of Numis Corporation Plc. The integration of both brands' strengths and reputations in the UK and global markets has led to the introduction of 'Deutsche Numis', emerging as a prominent entity in UK investment banking and the preferred advisor for listed companies in the UK., In January 2024, Perenna took a major step forward by becoming a part of the lender panels for several prominent networks and clubs in the UK, such as Mortgage Advice Bureau, Stonebridge, and Legal & General Mortgage Club. This expansion marks a strategic growth initiative for Perenna, with intentions to forge additional partnerships in the coming times.. Notable trends are: The Future of Mortgages in UK is Being Reshaped by Digitization.

The 10 largest mortgage lenders in the United Kingdom accounted for approximately 83 percent of the total market, with the top three alone accounting for 48 percent in 2024. Lloyds Banking Group had the largest market share of gross mortgage lending, with nearly 47 billion British pounds in lending in 2024. HSBC, which is the largest UK bank by total assets, ranked fifth. Development of the mortgage market In 2024, the value of outstanding in mortgage lending to individuals amounted to 1.6 trillion British pounds. Although this figure has continuously increased in the past, the UK mortgage market declined dramatically in 2024, registering the lowest value of mortgage lending since 2015. In 2020, the COVID-19 pandemic caused the market to contract for the first time since 2012. The next two years saw mortgage lending soar due to pent-up demand, but as interest rates soared, the housing market cooled, leading to a decrease in new loans of about 100 billion British pounds. The end of low interest rates In 2021, mortgage rates saw some of their lowest levels since recording began by the Bank of England. For a long time, this was particularly good news for first-time homebuyers and those remortgaging their property. Nevertheless, due to the rising inflation, mortgage rates started to rise in the second half of the year, resulting in the 10-year rate doubling in 2022.

The value of buy-to-let (BTL) mortgage loans for property remortgaging in the UK was forecast to continue to increase in 2025, after plummeting in 2023. In 2023, buy-to-let mortgages originated for a property purchase amounted to ************ British pounds, while remortgage originations totaled ** billion British pounds. By 2026, mortgage lending for purchases was forecast to remain stable, while remortgage lending was expected to rise to ** billion British pounds.

The FCA publishes the latest data from firms who have signed up to the Government’s Mortgage Charter. The Government’s Mortgage Charter, introduced in June 2023, contains commitments, over and above FCA requirements, made by mortgage lenders. There are 49 signatories, representing around 90% of the mortgage market. These commitments include: not to force a borrower to leave their home without their consent, unless in exceptional circumstances, in less than a year from their first missed payment to allow customers to lock in a new deal up to 6 months ahead of the end of a fixed rate deal, and to request a better like-for-like deal up until the new one starts, if one is available without assessing affordability, to permit customers who are up to date with their payments to switch to interest-only payments for 6 months, or to extend their mortgage term with the option to revert to their original term within 6 months

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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 advantag

Mortgage interest rates in the UK were on a downward trend for more than a decade before soaring in 2022. In the first quarter of 2025, the average weighted interest rate stood at **** percent — nearly ***** times the interest rate in the first quarter of 2022. Mortgage rates also vary depending on the type of mortgage: Historically, fixed rate mortgages with a shorter term had on average lower interest rates. What types of mortgages are there? In terms of the type of interest rate, mortgages can be fixed and variable. A fixed interest rate is simply a mortgage where the rate of repayment is fixed, while a variable rate depends on the lender’s underlying variable interest rate. Furthermore, mortgages could be for a house purchase or for refinancing. The vast majority of mortgages in the UK are fixed rate mortgages for house purchase, and only a small share is for remortgaging. How big is the UK mortgage market? The UK has the largest mortgage market in Europe, amounting to over ** billion euros in gross residential mortgage lending as of the fourth quarter of 2024. When comparing the total outstanding residential mortgage lending, the UK also ranks first with about *** trillion euros.

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Loan Servicing Software Market Size 2025-2029

The loan servicing software market size is forecast to increase by USD 3.43 billion, at a CAGR of 13.4% between 2024 and 2029.

The market is driven by the increasing demand for efficiency in lending operations. Lenders seek to streamline their processes and reduce operational costs, making automated loan servicing solutions increasingly valuable. Strategic partnerships and acquisitions among market participants further fuel market expansion, as they collaborate to offer comprehensive solutions and expand their reach. Creditworthiness is assessed using credit scoring algorithms, alternative data sources, and AI, ensuring lenders mitigate default risk. However, the market faces challenges from open-source loan servicing software, which can offer cost-effective alternatives to proprietary solutions.
As competition intensifies, companies must differentiate themselves through superior functionality, customer service, and integration capabilities to maintain market share. To capitalize on opportunities and navigate challenges effectively, market players should focus on continuous innovation, strategic partnerships, and robust customer support.

What will be the Size of the Loan Servicing Software Market during the forecast period?

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The market continues to evolve, driven by the need for system scalability, regulatory reporting, and enhanced user experiences. Loan servicers seek solutions that seamlessly integrate escrow management, automated payment processing, machine learning, and predictive analytics. Hybrid loan servicing models, which combine on-premise and cloud-based systems, are gaining popularity. Loan portfolio management, loan servicing workflow, and loan origination systems are key areas of focus. Mobile loan servicing and loan servicing consulting are also important, as servicers strive for increased efficiency and improved customer communication management. Risk management, data migration, API integration, and document management are essential components of modern loan servicing solutions.

Default management, foreclosure management, and audit trail are also critical, ensuring regulatory compliance and data integrity. Loan servicing reporting, fraud detection, and loan servicing analytics are crucial for effective decision-making. User experience and loan servicing training are also prioritized, as servicers aim to provide exceptional customer satisfaction. Artificial intelligence and machine learning are transforming loan servicing, enabling predictive analytics and automated loan modification processing. Regulatory reporting and system scalability remain top priorities, as servicers navigate the evolving loan servicing landscape.

How is this Loan Servicing Software Industry segmented?

The loan servicing software 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.

Application

  Banks
  Credit unions
  Mortgage lenders
  Brokers
  Others


Deployment

  Cloud-based
  On-premises


Component

  Software
  Services


Sector

  Large enterprises
  Small and medium enterprises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Application Insights

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

Loan servicing software is a crucial component of loan origination and servicing technologies (LOS) utilized by banks and financial institutions (BFSI). This software streamlines daily operations by enabling BFSI to accept loan applications online through their websites. The convenience of digital applications aligns with customers' preferences for using the Internet and smartphones. LOS solutions offer features such as EMI calculators, loan eligibility ready reckoners, and document checklists, facilitating a seamless application process 24/7. Pre-configured workflows for credit scoring, document checklist, and approvals significantly reduce turnaround time, enhancing operational efficiency by up to 50%. Escrow management, automated payment processing, and loan portfolio management are integral functions of loan servicing software.

Machine learning and predictive analytics optimize risk management, while user experience and document management ensure customer satisfaction. Cloud-based loan servicing and mobile loan servicing cater to the evolving needs of customers. Loan servicing consulting and automation services help institutions optimize their loan servicing processes.

In 2023, the number of mortgage sales (PSD) in the UK stood at ******* million for the year. Of these, mortgage loans valued between ******* and ***, British pounds were the most sought after. This is unsurprising, given the average house price in the UK.

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 ******* 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 May 2025, the number of mortgage approvals exceeded *******—up from about ****** in the same month a year ago. The increase indicated a rise in mortgage demand and an improvement in consumer sentiment.

The median loan-to-value ratio for mortgages in the UK in 2023 was approximately **** percent. This meant that the average mortgage covered **** percent of the property sales price, leaving the home acquirer to cover the remaining **** percent with their own savings. Across the country, the LTV ratio was the lowest in London, and the highest in Northern Ireland.