Market Trends of Europe Mortgage / Loan Broker Industry
The Housing Market's Expansion Drives Up Demand for Mortgage Brokers
The home loan segment is indeed a major market in the mortgage/loan broker market in Europe. The market for home loans in Europe is diverse, with various types of loans and lenders available across different countries. Factors such as interest rates, loan terms, and eligibility criteria can vary widely. Economic conditions, such as interest rates, employment levels, and housing market trends, significantly influence the residential mortgage market. Changes in these factors can impact borrower demand and lender profitability.
United Kingdom is Dominating the Market
In 2021, the mortgage lending market was booming in the United Kingdom. Gross lending increased 26% over 2020, when pandemic restrictions had a significant negative impact on lending, to GBP 308.5 billion. Yet it was also 15% more than the GBP 269.0 billion in 2019.
While slightly rising to 2.11% from 2.00% in 2020, the average mortgage interest rate stayed below the average of 2.25% in 2019. In response to the pandemic, the base rate was decreased in March 2020 from 0.75% to 0.10%. When more lenders priced in the extra risk or pulled these products off the market, mortgage interest rates first rose, especially at larger LTVs (over 75%).
