Impact of the Credit Crunch on UK Mortgage Product Structures.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/6dd3aa/impact_of_the_cred cred Noun Slang short for credibility Noun 1. cred - credibility among young fashionable urban individuals street cred, street credibility ) has announced the addition of the "Impact of the Credit Crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. on UK Mortgage Product Structures" report to their offering. The severe repercussions repercussions npl → répercussions fpl repercussions npl → Auswirkungen pl from the US sub-prime crisis have been felt in most of the worlds economies, but none more so than Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , and in particular the UK. The effects of this lack of liquidity have turned the UK mortgage market on its head, and lenders are now making sweeping changes to product structures in an effort to stabilize stabilize See peg. their product portfolios in the turmoil. Scope * Illustrates changes in the mortgage market between 2007 and 2008, including number of prime, sub-prime, first time buyer and remortgage A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The term is mainly used commercially in the United Kingdom, though what it describes is not uniquely British. deals. * Details the changes to mortgage product structures (LTV LTV See: Loan-to-value ratio ratios, pricing, maximum borrowing) * Assesses future changes to the UK mortgage market and product structures Highlights of this title The first quarter of 2007 saw 503,000 mortgage deals written for a total of 84 billion. In the first quarter of this year, approximately half that number were written, while the value of mortgage deals dropped by almost 10 billion to 75 billion. The market has decreased steadily since June 2007, but the largest drop occurred in 2008, resulting in a cut of almost 800 mortgage offers from the market. Although it is unlikely to recover to pre-credit crunch (1) To process data. See number crunching. (2) To compress data. See data compression. 1. (jargon) crunch - To process, usually in a time-consuming or complicated way. levels, the mortgage market needs to stabilize in order for a traditional and affordable mortgage product structure to resurface re·sur·face v. re·sur·faced, re·sur·fac·ing, re·sur·fac·es v.tr. To cover with a new surface: resurfacing a road; resurfaced the floor. v.intr. . Key reasons to purchase this title * Understand how the credit crunch has changed the mortgage market playing field. * Learn how lenders have changed their mortgage product structures due to the credit crunch. * Gain insight on the future of the market to correctly steer steer castrated male cattle beast over a year of age. See also bullock, buller steer. steer bulling see bulling. steer Medtalk verb future product development strategy. Key Topics Covered: - The UK mortgage market has shrunk following the liquidity crisis - The lack of funds in the UK money markets has led to drastic changes in the mortgage market - Lenders have resorted to using a number of strategies to balance demand with supply - A large number of mortgage deals have disappeared off the market - Some lenders have suspended new originations - Mortgage product structures have changed considerably - Sub-prime mortgage products are very limited - LTV ratios have decreased significantly across all mortgage products - While 100% LTV mortgages still exist in the market, they are only available in restricted regions or with heavy credit guarantees - The average maximum LTV has decreased by 8.9% in 12 months - Fixed-rate mortgages are currently the most expensive they have been in the last decade - Even mainstream lenders best fixed-rate offers are not particularly attractive - Lenders will continue to differentiate prices between distribution channels - Maximum advances are lower by over GBP 200,000 compared to June 2007 - The impact of the credit crunch will accelerate through 2008 - The sub-prime and near-prime markets will continue to be worst hit - First time buyers will continue to struggle to find credit - Mortgage product innovation that demonstrates a tangible benefit to home buyers will win new market share - HSBCs RateMatcher Mortgage offers a competitive remortgage rate to struggling homeowners - Lloyds TSBs Airmiles mortgage helps consumers forget their credit problems For more information visit http://www.researchandmarkets.com/research/6dd3aa/impact_of_the_cred Source: Datamonitor |
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