Released on = April 15, 2007, 10:38 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The UK mortgage market continues to be extremely
competitive. It is providing consumers with cheaper mortgages, increased flexibility
and product range, and more choice in how to buy a mortgage.

Press Release Body =
Direct Mortgages Market Assessment 2006

The UK mortgage market continues to be extremely competitive. It is providing
consumers with cheaper mortgages, increased flexibility and product range, and more
choice in how to buy a mortgage.

The market is also broadening, with subprime borrowers now able to choose from a
range of large providers for a mortgage, due to a wave of new niche market entrants
and the diversification of traditional lenders in the market.

The mortgage market is now subject to detailed regulation by the Financial Services
Authority (FSA), following the mis-selling of endowment mortgages and a reduction in
consumer trust. In 2005, many provider and independent financial adviser (IFA) staff
had yet to meet the standards of financial advice that the FSA expects. Principles
of clarity, transparency and products that fit the borrower\'s circumstances are
prime aspects of the new regulations. The provision of clear terms of business and
comparable offers should make it possible for consumers to reduce the costs of their
preferred product to a minimum.

Mortgage providers generally offer the same products through indirect and direct
channels, while some have become pure direct or indirect operators to reduce their
costs and improve margins. The impact of technology will improve the efficiency of
the market.

Telephone-mediated mortgages experienced an increase in popularity during the late
1990s, but it is likely that this channel has not expanded much in recent years.
Internet-mediated sales have not fulfilled the expectations of early innovators, and
currently are only offered by a small number of firms. However, sales through
branches have held up. This might be related to the extensive process of applying
for and processing mortgages, and to the variety of products that may confuse the
applicant.

In this report, it considers the likelihood of a long-term fall or rise in house
prices, and the future of the housing market.

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