UK Mortgage Market

UK Mortgage Market Overview:

The UK mortgage market size reached USD 38.21 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 117.07 Billion by ​2033​, exhibiting a growth rate (CAGR) of 13.25% during 2025-2033. The market is driven by the rising economic growth and stability in the country, implementation of favorable government policies, increasing population and urbanization, rapid technological advancements in mortgage lending, and the growing focus on reducing interest rate by banks.

UK Mortgage Market Trends:

Rising Economic Growth and Stability:

The rising economy of the United Kingdom which is encouraging consumers to make large financial commitments such as purchasing homes is positively impacting the mortgage market. As per the IMF forecast the gross domestic product (GDP) is expected to rise by 0.7% in 2024 up from 0.5% in 2023. Moreover, the introduction of government and private sector initiatives such as stimulus packages or incentives for first-time buyers is also acting as a growth-inducing factor. For instance, UK’s Lloyds Banking Group announced in August 2024 that the company will allow new buyers to take out loans worth up to 5.5 times their household annual income and higher than the traditional maximum. This has encouraged first-time buyers to purchase new homes thereby enhancing the UK mortgage market growth.

Imposition of Government Housing Policies and Schemes:

The application of government policies to promote homeownership and reduce the cost of home buying is another significant driver of the UK mortgage market. Initiatives like Help to Buy, Shared Ownership and Stamp Duty holidays have facilitated entry into the housing market for first-time buyers and low-income households. These schemes offer fiscal assistance in terms of equity loans, lower deposits or tax relief that reduce the expense of purchasing a home. For instance, the Help to Buy initiative has played a central role in rejuvenating the mortgage market by improving access to newly built homes to a greater cross-section of potential buyers. UK mortgage market share is expanding as government policies and Stamp Duty holidays enhance affordability, increase homeownership rates and drive mortgage demand among first-time buyers and low-income households.

Rising Demographic Changes and Population Growth:

The increasing population, urbanization, and changing household structures are contributing to the demand for housing and mortgages in the UK. The country is estimated to host a population of 69,138,192 people in 2024, with 84.4% of the population living in urban areas. Moreover, the rising demographic shift in population as younger individuals tend to buy their first homes, creating a new wave of demand for mortgages, is bolstering the expansion of the market. Along with this, the rise in single-person households and smaller family units is increasing the demand for smaller properties with mortgages. For example, in the year 2023, the number of people living alone in the country totaled at 8.4 million, which is an increase from 7.8 million in 2013. This gradual demographic shift is creating a positive UK mortgage market outlook as increasing urbanization, population growth and evolving household structures drive demand for mortgages particularly for first-time buyers and smaller property units.

UK Mortgage Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type and application.

Type Insights:

• Financial Services
• Real Estate
• Banking
• Lending
• Finance

The report has provided a detailed breakup and analysis of the market based on the type. This includes financial services, real estate, banking, lending, and finance.

Application Insights:

• Homeownership
• Real Estate Investment
• Financial Planning
• Debt Management
• Financial Stability

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes homeownership, real estate investment, financial planning, debt management, and financial stability.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Mortgage Market News:

• In September 2024, Virgin Money announced a reduction in certain fixed rates across its residential and buy-to-let offerings, with cuts of up to 0.2 percentage points. Among the new options is a residential purchase rate of 5.03 percent with no fees, available to buyers who have a 5 percent cash deposit. This deal also offers £300 cashback upon completion.
• In September 2024, Accord Mortgages decreased the rates on selected buy-to-let products for both purchases and remortgaging by as much as 0.3 percentage points. The mutual offers a two-year fixed rate for buy-to-let purchases at 5.09% with a fee of £3,495, as well as a five-year fixed rate for buy-to-let remortgaging at 4.14% with a fee of £995.

UK Mortgage Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK mortgage market performed so far and how will it perform in the coming years?
• What is the breakup of the UK mortgage market on the basis of type?
• What is the breakup of the UK mortgage market on the basis of application?
• What is the breakup of the UK mortgage market on the basis of region?
• What are the various stages in the value chain of the UK mortgage market? 
• What are the key driving factors and challenges in the UK mortgage market?
• What is the structure of the UK mortgage market and who are the key players?
• What is the degree of competition in the UK mortgage market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK mortgage market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK mortgage market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK mortgage industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.