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|Challenges in the UK Mortgage Market Drive Key Decisions Bank Boards Need to Tackle Before 2016|
|Friday, 20 November 2015|
On Tuesday 1 December, Nomis Solutions, a pricing and profitability software solutions provider for the banking industry, and Berkeley Research Group (BRG), a leading global advisory and expert consulting firm, will present their key findings on the major challenges facing the UK mortgage market during a morning webinar broadcast.
The difficult truth revealed by this research is that modern UK mortgage books are blighted by deep-set inefficiencies. In 2007, at the mortgage lending peak, to grow total net lending by £100 required lenders to advance £350. In 2014, to achieve the same net lending growth required £800 of new lending. With base rates remaining low and loan to values falling as a result of rising property prices, the start of a new era in the UK mortgage market is about to happen.
Damian Young, managing director of Nomis Solutions EMEA, stated, “We are seeing some acute challenges in the UK mortgage market—retention, margin reduction, regulation, interest rate environment, just to name a few. Increasing pressure on pricing is squeezing banks’ margins, causing a 'race to the bottom'. There is a rush to grow volumes that is instigating competition in the market. Teaming with BRG puts us in a position to help banks address these challenges and tackle the regulators’ scrutiny to improve customer offerings responsibly and fairly”.
The major providers are, in essence, overlooking a cliff edge where base rates rise and remortgaging increases, leaving their customers free to peruse the attractive rates offered by the market’s new challenger banks. Regulators, keen to facilitate these developments in competitiveness, will be looking to encourage this in order to promote fair pricing as well as promote timely availability of relevant information.
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Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
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