2017年-FCA英国金融行为监管局_fsa_psd_mortgages_2010_15页_445kb

Mortgage Product Sales Data (PSD) Trend Report 2005-2010

Core Content Overview

This report provides a detailed analysis of mortgage product sales data (PSD) from April 2005 to March 2010, highlighting key trends in the mortgage market, including sales volume, interest rates, repayment methods, loan-to-value (LTV) ratios, and regional variations.

Main Points and Key Information

1. Sales Trends

• Total Sales: 0.93 million mortgage sales with a total value of £123 billion were reported between April 2009 and March 2010, down from 1.2 million sales with a value of £171 billion in 2008/09.
• Average Loan Value: £133,000 in 2009/10, compared to £138,000 in 2008/09.
• Transaction Types:
  • 38% of transactions were remortgages (down from 60% in 2008/09).
  • 36% were home movers (up from 23% in 2008/09).
  • 22% were first-time buyers (up from 13% in 2008/09).
• Market Concentration: The top 10 lenders accounted for 85% of all sales.

2. Interest Rates

• Fixed-Rate Mortgages: 64% of all sales were fixed-rate mortgages in 2009/10, up from 59% in 2008/09.
• First-Time Buyers: 78% of first-time buyers opted for fixed-rate mortgages (up from 74% in 2008/09).
• Average Initial Interest Rate: 4.2% (down from 5.4% in 2008/09).
• Mortgage Spread: The average spread over the Bank of England base rate was 3.7% (down from 2.2% in 2008/09), but still higher than historical levels.

3. Advice and Sales Channels

• Advised Sales: 70% of all mortgage transactions were advised sales in 2009/10 (up from 67% in 2008/09).
• Sales Channels:
  • Intermediated sales accounted for 54–63% of total sales between Q2 2005 and Q1 2008.
  • From Q1 2008, this ratio declined, and by Q2 2009–Q1 2010, intermediated sales were no longer the majority (45–49%).
  • The trend reversed in Q1 2010.

4. Repayment Methods

• Capital and Interest: 72% of customers chose this method (up from 63% in 2008/09).
• Interest-Only: 19% of mortgages were interest-only (down from 15% in 2008/09).
• Unknown Repayment Vehicle: 14.9% of interest-only mortgages had unknown repayment vehicles (down from 24.1% in Q1 2008).
• Conservatism Increase: The shift reflects a more conservative approach by lenders and borrowers, especially post-US mortgage crisis.

5. Loan-to-Value (LTV) Ratios

• LTV Trends:
  • 74% of mortgage lending was to borrowers with LTV < 75% in 2009/10 (up from 69% in 2008/09).
  • 89% of new mortgage sales had LTV < 85% in 2009/10 (up from 76% in Q4 2007).
  • LTV > 90% accounted for 1.8% of sales in 2009/10 (down from 6.5% in 2008/09).
• First-Time Buyers:
  • 48% of first-time buyer mortgages had LTV < 75% in 2009/10 (up from 36% in 2008/09).
  • The proportion of first-time buyers with LTV > 75% dropped from 64% in 2008/09 to 52% in 2009/10.

6. Income Verification and Risk Lending

• Income Verification:
  • Sales of non-income verified mortgages contracted by 25.3% yoy in Q1 2010.
  • Sales of income verified mortgages expanded by 15.0% yoy.
• Higher Risk Lending:
  • Mortgages to self-employed customers declined the most (11.7% yoy).
  • Mortgages to impaired credit customers also declined (0.4% of all mortgages in 2009/10, down from 1.5% in 2008/09).
• Risk Reduction: The proportion of mortgages with "risky" characteristics (e.g., non-income verified, impaired credit) has decreased.

7. Lifetime Mortgages

• Trend: Lifetime mortgages contracted by 4.0% yoy from Q2 2009, while non-lifetime mortgages expanded by 0.6% yoy.

8. Regional Analysis

• Regional Sales Decline: All regions saw a decline in new mortgage sales, ranging from 54% to 89% depending on the area.
• Regional Variations:
  • The North West, Northern Ireland, and Scotland had the largest relative declines.
  • The East and South West regions saw increases in their share of new mortgages.

Summary of Key Trends

• Overall Market Decline: Mortgage sales reached their lowest level since 2005, with the rate of decline slowing since 2009.
• Shift to Fixed Rates: Fixed-rate mortgages became more popular, especially among first-time buyers.
• Conservative Lending Practices: Lenders and borrowers have adopted more conservative approaches, with a significant increase in income verification and a reduction in high LTV and interest-only mortgages.
• Market Consolidation: The number of mortgage lenders has decreased, with only 127 active lenders in 2009/10.
• Regional Disparities: Sales varied significantly across UK regions, with some areas showing more resilience than others.

Conclusion

The mortgage market in the UK experienced a period of contraction and increased conservatism between 2005 and 2010. The shift towards fixed-rate mortgages, income verification, and lower LTV ratios reflects a response to economic uncertainty and financial instability. The report also highlights the importance of PSD in understanding market dynamics and the impact of regulatory and economic changes on consumer behavior and lender practices.