UK Home Equity Lending Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

UK Home Equity Lending Market Analysis

Many firms encountered uncertainty as a result of Covid-19, which resulted in job losses or reduced pay. As the crisis drags on, banks, credit unions, and other lenders continue to take a cautious approach to lend, putting some of their products on hold. The Home Equity lending market especially Home Equity line of credit (HELOC) is impacted by the Corona-virus pandemic. During the COVID-19 pandemic, some of the country's top banks declared that they would no longer be accepting new HELOC applications.

Homeownership in the United Kingdom was at a declining state since early 2000. The highest homeownership in the early 2000s had hit low after the global financial crisis. There have been some signs of improvements and homeownership is recovering slightly in the last couple of years. The number of UK citizens investing in 'buy to let property has increased dramatically over the past year. Property has become a popular alternative to traditional investments and pensions, as it provides both rental income and capital growth. Buying the investment property is tough and requires a large cash reserve. It is a slow process and needs a cash reserve of 20-30 % of the total investment so, Investor are utilizing the home equity lending and home equity line of credit for investment in property. A home equity line of credit may be a preferable option for an investment property if the investor can agree on the amount to be borrowed and then withdraw the funds only when needed. Once an investor has located an investment property, they can borrow the funds they need - for a deposit, a cash purchase, or to cover costs - and only pay back the funds after they have utilized them. Home equity loans of credit are generally flexible, allowing the borrower to repay the loan and redraw it at a later period. So, if an investor purchases an investment property, he or she can develop it and resell it, and can use the proceeds from sale to repay the home equity line of credit.

UK Home Equity Lending Market Trends

This section covers the major market trends shaping the UK Home Equity Lending Market according to our research experts:

Raising Homeownership Rate is Driving the Home Equity Lending Market

UK Home Equity Lending Industry Segmentation

Home equity lending allows homeowners to get credit based on how much equity they have in their homes. Lenders normally allow homeowners to borrow up to 80 percent of their home equity in a lump sum, which may be a big figure for those who have paid off a major portion of their mortgage or who own their property outright. This report aims to provide a detailed analysis of Home equity lending in the United Kingdom. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The UK Home Equity Lending Market can be segmented by Types, (Fixed Rate Loans, Home Equity Line of Credit (HELOC)), By Service Provider, (Banks, Building Societies, Online, Credit Unions and Others), and by Mode (Online and Offline).