At True Cost Mortgages – your mortgage broker for Liverpool and Skelmersdale, we’ve compiled a brief overview of the main features of the UK mortgage sector that we think makes interesting reading as the sector plays such a vital role in the health of the UK economy.
This is especially true when you think of all the allied businesses that depend on a strong and vibrant housing sector.
The size of the mortgage sector stands at around 80% of all consumer debt in the UK and is significant within the overall UK economy. The regulated residential mortgage sector is currently worth at least £1 trillion, with roughly 8 million outstanding mortgage accounts as of 2016.
In 2016 alone there were around 1.9 million mortgage transactions around 42% of which were internal switches with the same lender while consumers moving their mortgage to a different lender (external switches) accounted for around 20%.
The other 38% comprised of mortgages for house purchases (first-time buyers and home movers) and others (including lifetime mortgages – Equity Release).
A mortgage is a known as a secondary product that many people need in order to own their home – which is their primary product. For existing homeowners it can also provide a means of releasing capital from the equity portions in their home by borrowing against the overall value within their home.
In the UK, consumers typically take out a long-term contract for example; a mortgage with a term of 30 years but they frequently switch every 2-5 years (on average) to get a better deal.
Back in 2016 for first-time buyers the average loan size was around £135,000 with an initial term of around 30 years.
For many consumers, the value and term of a mortgage can make it a significant financial commitment and needs careful thought and professional advice and planning.
True Cost Mortgages have a wealth of experience and offer Independent Mortgage Advice to clients in Liverpool, Skelmersdale and throughout the North West of England.