Table of Contents

European Mortgage Markets: Opportunities for Australian Lenders - A comprehensive overview of the major Western European mortgage markets. Written specifically for Australian lenders interested in this market.

Product Code: DMFS1637

Publication Date: 20-Jan-2004

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Overview

Introduction

Europe has an array of diverse mortgage markets. Any Australian company planning to enter a European mortgage market must therefore do so having investigated the size of the market, its competitive and regulatory environment and projected future growth. Providing information on these topics and more, European Mortgage Markets is invaluable for companies wanting to know about this sector.

Scope

· Features market sizing and forecasts of gross advances to 2007 helping you to plan ahead.

· There are eight country specific chapters on France, Germany, Ireland, Italy, Netherlands, Spain, Sweden and the UK.

· ·Includes competitor information and eight individual company profiles helping you to understand the competitive environment in these countries,

Highlights

Ireland remains a small but vibrant mortgage market and although Datamonitor predicts the market's growth to slow over the next five years, relative to other European markets it will continue to grow strongly.

The UK market boasts a large number of well-positioned small lenders that would be valuable acquisitions if the opportunity arose. Many of these lenders operate in specialist markets such as buy-to-let or self-certification and their acquisition could therefore stimulate the development of these markets within Australia

·A number of foreign players are already active in the Spanish mortgage market servicing the demand for property among non-Spanish buyers. Property demand from these buyers who often come from the UK, Germany and the Netherlands will remain strong. However, it is often channeled through intermediaries based in buyers' home country.

Reasons to Purchase

· Market sizing and forecasts will allow you to compare the past, present and future of European mortgage markets relative to the market in Australia.

· Competitor information will help identify potential acquisition targets.

· Discussion of opportunities in mortgage markets in Eastern Europe draws attention to newly emerging markets that are now among the most dynamic

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ABOUT DATAMONITOR	2
CHAPTER 1 EXECUTIVE SUMMARY	3
Australian and European Mortgage Markets Compared	3
Interest rates are low in Australia and across Europe	3
The level of owner occupation in Australia is equal to the European average	5
European mortgage market gross advances amounted to EUR 773.4 billion at the end of 2002	7
Australian house price increases have matched those in the European hot spots	8
Developments in the European mortgage bond market	10
Country specific chapters	10
The amendment of the Mortgage Bank Act, 2002	11
Accounting for the Spanish house price boom	12
Competitor profile: Rabobank	13
A brief history of Rabobank	13
Rabobank has a 24 per cent share of the Dutch mortgage market	16
A SWOT analysis of Rabobank	17
Forecast of gross advances in the Swedish mortgage market, 2003-2007	19
Market entry opportunities	21
Future Opportunities in European Mortgage Markets	22
The fastest growing markets will remain so over the next five years although growth rates will be lower across the board	22
Competitive intensity has increased confirming optimism about the future of mortgage markets in the transition economies	24
TABLE OF CONTENTS	26
LIST OF TABLES	36
LIST OF FIGURES	41
CHAPTER 2 INTRODUCTION	48
What is this report about?	48
Who is the target reader?	48
How to use this report	49
Scope	50
Related reports	50
CHAPTER 3 AUSTRALIAN AND EUROPEAN MORTGAGE MARKETS COMPARED	52
Macroeconomic conditions	52
Unemployment has fallen in most countries	52
Interest rates are low in Australia and across Europe	57
Australia is enjoying faster GDP growth than many European countries	61
The composition of housing stock	63
Australia has a higher number of persons per dwelling than countries in Europe	63
The level of owner occupation in Australia is equal to the European average	66
Lending figures	70
Total lending commitments have risen rapidly	71
European mortgage market gross advances amounted to EUR 773.4 billion during 2002	74
European mortgage market balances outstanding stood at EUR 3,702 billion at the end of 2002	77
Mortgage balances outstanding as a percentage of GDP vary widely within Europe	79
The number of residential mortgage loans advanced in Europe surpassed 3.1 million in 2002	82
House prices	84
Australian house price increases have matched those in the European hot spots	85
Product availability	90
A wide array of products is available in the Australian mortgage market	91
Product availability is generally poorer in Europe...although the UK is an exception	92
Conclusion	95
The Australian economic environment is now more uncertain	95
Expertise gained domestically will be an asset overseas	96
CHAPTER 4 KEY ISSUES IN EUROPEAN MORTGAGE MARKETS	97
Mortgage product trends within Europe	97
Variable and fixed rate mortgage products vary in popularity within Europe	97
The changing face of mortgage funding in Europe	103
Explaining the ways that mortgage lending is funded	103
Developments in the mortgage bond market	107
Regulation of European mortgage markets	108
Basel II: big changes on the horizon in 2006	108
European Code of Conduct on Home Loans	112
Mortgage distribution channels	114
Branches remain the most important mortgage distribution channel	114
Conclusion	118
CHAPTER 5 THE FRENCH MORTGAGE MARKET	120
Summary of key issues	120
State involvement is significant in the French property market	123
Competitor profile: Crédit Agricole	124
A brief history of Crédit Agricole	124
A leader in the French mortgage market	127
La Poste: a new competitive threat to Crédit Agricole	131
A SWOT analysis of Crédit Agricole	132
Forecast of gross advances in the French mortgage market, 2003-2007	134
Economic difficulties will harm the mortgage market	134
Market entry opportunities	137
CHAPTER 6 THE GERMAN MORTGAGE MARKET	138
Summary of key issues	138
The low level of homeownership: a restriction on the German mortgage market	141
Regulation	143
The amendment of the Mortgage Bank Act, 2002	144
Competitive profile: BHW	145
The Bauspar system explained	145
A brief history of BHW	149
Although Bauspar is still its primary product, BHW has undertaken a major shift in focus over the last few years	152
A SWOT analysis of BHW	154
Forecast of gross advances in the German mortgage market, 2003-2007	156
A higher level of homeownership will boost the mortgage market but only over the long-term	156
Market entry opportunities	159
CHAPTER 7 THE IRISH MORTGAGE MARKET	160
Summary of key issues	160
Irish house prices have rocketed	163
Regulation	166
The introduction of the Pfandbrief concept into Ireland	166
Recent developments in Irish housing policy	166
Competitor profile: First Active	168
A brief history of First Active	168
First Active is the fourth largest mortgage lender in Ireland	172
First Active brings the current account mortgage comes to Ireland	175
A SWOT analysis of First Active	177
Forecast of gross advances in the Irish mortgage market, 2003-2007	179
Affordability constraints will hinder the market's growth	179
Market entry opportunities	182
CHAPTER 8 THE ITALIAN MORTGAGE MARKET	183
Summary of key issues	183
The ever-growing Italian owner occupied sector	186
Regulation	188
The Banking Law	188
Competitor profile: Banca Woolwich	188
A brief history of Banca Woolwich	188
Banca Woolwich has become a significant force in the Italian mortgage market	189
A SWOT analysis of Banca Woolwich	195
Forecast of gross advances in the Italian mortgage market, 2003-2007	197
The increasing propensity for Italians to borrow will fuel a growing mortgage market	197
Market entry opportunities	200
CHAPTER 9 THE DUTCH MORTGAGE MARKET	201
Summary of key issues	201
Following several 'hot' years Dutch price increases have now slowed	204
Creating a favorable environment for Dutch home buyers	206
Regulation	207
The 2001 income tax reforms: affecting second home owners	208
Competitor profile: Rabobank	208
A brief history of Rabobank	208
Rabobank has a 24 per cent share of the Dutch mortgage market	212
A SWOT analysis of Rabobank	214
Forecast of gross advances in the Dutch mortgage market, 2003-2007	216
The increasing level of owner occupation and steadily increasing house prices will account for rising gross advances	216
Market entry opportunities	219
CHAPTER 10 THE SPANISH MORTGAGE MARKET	220
Summary of key issues	220
Accounting for the Spanish house price boom	223
Regulation	226
Improving the position of the cajas	226
Competitor profile: Banco Popular	228
A brief history of Banco Popular	228
Banco Popular has increased its presence in Spain	228
Banco Popular is relatively well positioned across its product portfolio	230
Banco Popular's expansion into Portugal: examining the motives and the likely outcomes	234
A SWOT analysis of Banco Popular	236
Forecast of gross advances in the Spanish mortgage market, 2003-2007	237
Growth will remain strong in the Spanish market	237
Market entry opportunities	240
CHAPTER 11 THE SWEDISH MORTGAGE MARKET	241
Summary of key issues	241
A low level of construction is constraining the Swedish mortgage market	244
Regulation	246
Bringing the Swedish covered bond market into line with those elsewhere in Europe	246
Competitor profile: Spintab	247
A brief history of Spintab	247
Maintaining operating profits despite falling staff numbers	249
A diversified distribution network	250
Taking top spot in the mortgage market	251
A SWOT analysis of Spintab	254
Forecast of gross advances in the Swedish mortgage market, 2003-2007	256
The economy's reaction to the rejection of the euro is key	256
Market entry opportunities	259
CHAPTER 12 THE UK MORTGAGE MARKET	260
Summary of key issues	260
UK house prices have exploded	264
Indeed, it is over the last five years when UK house prices have really taken off. Although prices have increased in all regions since 1987, prices increased at a higher compound annual growth rate over the last five years in all regions with the exception of Scotland. In the South West, for example, property prices increased at a compound annual growth rate of 6.8 per cent over the period 1987-2002 and at a compound annual growth rate of 18.8 per cent over the period 1998-2002.	265
Regulation	270
The FSA has a new regulatory remit	270
Competitor profile: Northern Rock	272
A brief history of Northern Rock	272
Northern Rock: a small but successful mortgage lender	274
Accounting for Northern Rock's success	278
A SWOT analysis of Northern Rock	283
Forecast of gross advances in the UK mortgage market, 2003-2007	285
Higher interest rates will make it a different environment over the next five years	285
Market entry opportunities	288
CHAPTER 13 FUTURE OPPORTUNITIES IN EUROPEAN MORTGAGE MARKETS	290
Conclusions from the market forecasts	290
The changing dynamics of the forecast markets	290
Slower growth will result in a new business environment over the next five years	294
Newly emerging European mortgage markets	295
Market conditions are now improving	296
Mortgage markets have benefited as countries have prepared for EU membership	298
CHAPTER 14 APPENDIX	302
Supplementary data	302
Underlying drivers of European Mortgage Markets	302
Key Issues in European Mortgage Markets	305
Country specific chapters	306
Definitions	310
Research methodology	313
Forecasting methodology	313
Bibliography	314
Relevant Datamonitor publications	314
Reports	314
Briefings	315
Future Datamonitor Publications	316
Relevant links	316
Europe wide associations and organizations	317
Country specific associations and organizations	317
Lenders	319
Datamonitor custom research capabilities	322
SPP writing team	324
How to contact experts in your industry	324
List of Tables
Table 1: The proportion of the dwelling stock in owner occupation in Australia	5
Table 2: Countries and competitors covered in chapters five to twelve	11
Table 3: Key measures of Rabobank's membership and branch infrastructure	15
Table 4: Countries and competitors covered in chapters five to twelve	50
Table 5: Unemployment as a percentage of the economically active population in Europe, 1993-1997	56
Table 6: Unemployment as a percentage of the economically active population in Europe, 1998-2002	57
Table 7: Eurozone interest rates since the introduction of the single currency on January 1st 1999	59
Table 8: Real GDP growth rate in European countries, 2000-2002	62
Table 9: Average number of persons per dwelling in Australia, 2001	65
Table 10: The average number of persons per dwelling in Europe, 2001	65
Table 11: The proportion of the dwelling stock in owner occupation in Australia	66
Table 12: Percentage of dwelling stock that is in owner occupation within Europe	69
Table 13: Lending commitments in the Australian mortgage market, 1998-2003 H1	72
Table 14: European mortgage market gross advances, 1998-2002	76
Table 15: Total lending commitments in the Australian mortgage market, 2002	77
Table 16: European mortgage market balances outstanding, 1998-2002	79
Table 17: Residential mortgage balances outstanding as a percentage of GDP in Europe	82
Table 18: The number of mortgage loans advanced against residential property, 1998-2002	84
Table 19: Indexed European house price trends, 1998-2002	88
Table 20: The varying popularity of variable, short-term fixed and long-term fixed rate mortgage products within selected countries in Europe	100
Table 21: The timescale for the introduction of Basel II within the European Union	110
Table 22: Countries that had achieved 100 per cent implementation of the European Code of Conduct on Home Loans by the end of 2002	113
Table 23: Number of branches in Europe, 2002-2005f	118
Table 24: French mortgage market fact sheet	122
Table 25: French mortgage market fact sheet continued	123
Table 26: Balances outstanding for the five largest lenders in the French mortgage market, 2002	129
Table 27: Forecast gross advances in the French mortgage market, 2003e-2007f	136
Table 28: German mortgage market fact sheet	140
Table 29: German mortgage market fact sheet continued	141
Table 30: Private Bausparkassen in Germany	147
Table 31: Public Bausparkassen in Germany	148
Table 32: Value of new Bauspar savings deposits by private Bausparkasse, 2002	151
Table 33: Forecast of gross advances in the German mortgage market, 2003e-2007f	158
Table 34: Irish mortgage market fact sheet	162
Table 35: Irish mortgage market fact sheet continued	163
Table 36: The percentage of houses priced at more than EUR 200,000 in Dublin and Ireland	165
Table 37: The demutualization of First National Building Society in 1998 was one of a number of demutualizations that have occurred in Ireland since the early 1990s	169
Table 38: Balances outstanding for the five largest lenders in the Irish mortgage market, 2002	174
Table 39: Forecast of gross advances in the Irish mortgage market, 2003e-2007f	181
Table 40: Italian mortgage market fact sheet	185
Table 41: Italian mortgage market fact sheet continued	186
Table 42: Balances outstanding for the six largest lenders in the Italian mortgage market, 2002	193
Table 43: Forecast of gross advances in the Italian mortgage market, 2003e-2007f	199
Table 44: Dutch mortgage market fact sheet	203
Table 45: Dutch mortgage market fact sheet continued	204
Table 46: Average property prices in the Netherlands, 1998-2002	205
Table 47: Key measures of Rabobank's membership and branch infrastructure, 1998- 2003 H1	211
Table 48: Balances outstanding for the largest five lenders in the Dutch mortgage market, 2002	212
Table 49: Forecast of gross advances in the Dutch mortgage market, 2003e-2007f	218
Table 50: Spanish mortgage market fact sheet	222
Table 51: Spanish mortgage market fact sheet continued	223
Table 52: Nominal and real mortgage rates in Europe, Q3 2002	226
Table 53: The five largest lenders in the Spanish mortgage market, 2002	232
Table 54: Forecast gross advances in the Spanish mortgage market, 2003e-2007f	239
Table 55: Swedish mortgage market fact sheet	243
Table 56: Swedish mortgage market fact sheet	244
Table 57: FöreningsSparbanken, Spintab's parent, is one of the major banking groups in Sweden	248
Table 58: Mortgage credit institutions in Sweden and their ownership	249
Table 59: Spintab's distribution network	251
Table 60: Balances outstanding for the five largest mortgage credit institutions in Sweden, 2002	253
Table 61: Forecast of gross advances in the Swedish mortgage market, 2003e-2007f	258
Table 62: UK mortgage market fact sheet	263
Table 63: UK mortgage market fact sheet continued	264
Table 64: UK monthly house price increases according to Halifax, 2000-2003	267
Table 65: Housing transactions and the transaction costs associated with moving home in Europe	270
Table 66: Northern Rock's branch network, 1998-2002	274
Table 67: Balances outstanding for the seven largest lenders in the UK mortgage market, 2002	276
Table 68: Market share of Northern Rock and the five largest UK mortgage lenders, 1998-2002	277
Table 69: Forecast of gross advances in the UK mortgage market, 2003e-2007f	287
Table 70: Forecasts of gross advances in eight European mortgage markets, 2003e-2007f	293
Table 71: Share of gross advances in the eight forecast mortgage markets, 2003e-2007f	293
Table 72: New member states and applicant countries to join the European Union	299
Table 73: Changes in the Swedish base rate since January 1999	302
Table 74: Changes in the Danish base rate since January 1999	303
Table 75: Changes in the UK base rate since January 1999	304
Table 76: Percentage share of total European gross advances by country, 1998-2002	305
Table 77: Percentage share of total European balances outstanding by country, 1998-2002	306
Table 78: Exchange rates applied in the UK and Sweden country specific chapters	306
Table 79: Balances outstanding and market share for the 30 largest lenders in the UK mortgage market, 2002	307
Table 80: Indexed mortgage balances outstanding by competitor in the UK mortgage market, 1998-2002	308
Table 81: Additional competitor balances outstanding data not presented in chapter eight and eleven	308
Table 82: Competitor information for markets not covered in chapters five to twelve	309
List of Figures
Figure 1: The Australian cash rate has fallen significantly over the last decade	4
Figure 2: Three countries in Europe have 80 per cent or more of their dwelling stock in owner occupation while a further five have less than 60 per cent of dwellings in this form of tenure	7
Figure 3: In 2002 mortgage market gross advances in the UK accounted for more than 40 per cent of the European total	8
Figure 4: At the end of the second quarter of 2003 the Australian house price index for an established house surpassed 224 index points	9
Figure 5: At the end of the first half of 2003 Rabobank's total assets stood at more than EUR 400 billion	14
Figure 6: Rabobank has decreased its number of member banks despite a more than 100 per cent increase in its number of members	15
Figure 7: A SWOT analysis of Rabobank	19
Figure 8: Gross advances in the Swedish mortgage market will increase at a compound annual growth of 3.3 per cent between 2003 and 2007 and amount to EUR 28.1 billion by the end of the period	21
Figure 9: Over the next five years the UK will remain the largest mortgage market in Europe judged in terms of gross advances. However, it will no longer be the fastest growing	23
Figure 10: Unemployment in Australia has been on a downward trend since 1993	53
Figure 11: With the exception of Germany, unemployment as a percentage of the economically active population in the five major European economies has fallen over the last decade	55
Figure 12: The Australian cash rate has fallen significantly over the last decade	58
Figure 13: The eurozone rate and the Bank of England base rate remain low. However, at times since 1999 there has been a large differential between them	60
Figure 14: The average number of persons per dwelling in Australia is higher than in Europe	64
Figure 15: Three countries in Europe have 80 per cent or more of their dwelling stock in owner occupation while a further five have less than 60 per cent of dwellings in this form of tenure	68
Figure 16: Total lending commitments in Australia have increased rapidly due to the number of investors purchasing property and the popularity of making home improvements	72
Figure 17: Buy-to-let gross advances and balances outstanding have increased dramatically since 1999 with the latter reaching £24.2 billion in 2002	74
Figure 18: In 2002 mortgage market gross advances in the UK accounted for more than 40 per cent of the European total	75
Figure 19: Balances outstanding in Germany at the end of 2002 were EUR 1068.7 billion, 28.9 per cent of total balances outstanding in Europe	78
Figure 20: In more than ten European countries mortgage balances outstanding are equivalent to less than 50 per cent of GDP	81
Figure 21: In the seven EU counties for which data is available more than 3.1 million mortgage loans were advanced in 2002	83
Figure 22: At the end of the second quarter of 2003 the Australian house price index for an established house surpassed 224 index points	85
Figure 23: The European house price 'hot spots' in recent years have been the Netherlands, Ireland, Spain and the UK	87
Figure 24: The median price of an Australian first home has increased by more than 59 per cent since 2001	89
Figure 25: Variable rate mortgage products are more popular in the UK than anywhere else in Europe. In contrast, in Germany long-term fixed rate products are the most common type of mortgage product	99
Figure 26: In contrast to most other economies in Europe, the UK has both a high penetration of variable rate mortgage loans and high mortgage balances outstanding relative to GDP	103
Figure 27: Using retail deposits is the most common way to fund mortgage lending in Europe	105
Figure 28: Explanation of the risk associated with the use of retail deposits to fund fixed rate mortgage lending	106
Figure 29: Germany accounts for more than 40 per cent of balances outstanding on mortgage bonds in Europe	107
Figure 30: According to the CML's Annual Housing Finance Survey 2002, 79 per cent of mortgage holders in the UK arranged their current mortgage in a branch	116
Figure 31: Bank branch networks will continue to contract in the years to 2005 albeit not by as much as previously thought	117
Figure 32: Retail banking in France accounts for only 13 per cent of Crédit Agricole's total number of employees	126
Figure 33: Crédit Agricole and the other four largest lenders in France hold more than 77 per cent of the French mortgage market	128
Figure 34: Mortgage lending is by far the most important type of lending engaged in by Crédit Agricole	130
Figure 35: A SWOT analysis of Crédit Agricole	134
Figure 36: Gross advances in the French mortgage market will increase at a compound annual growth rate of 2.9 per cent between 2003 and 2007 and amount to EUR 52.9 billion by the end of the period	136
Figure 37: BHW is the second largest Bausparkasse in Germany in 2002 based on new Bauspar savings deposits. However, it is some way behind BSH	150
Figure 38: Almost half of BHW's residential lending book is now in the form of mortgage loans rather than in Bauspar loans	154
Figure 39: A SWOT analysis of BHW	156
Figure 40: Gross advances in the German mortgage market will increase at a compound annual growth rate of 1.1 per cent between 2003 and 2007 and amount to EUR 76.0 billion by the end of the period	158
Figure 41: The rapid increase in Irish house prices is reflected in the increasing percentage of Irish housing that is valued at more than EUR 200,000	164
Figure 42: The history of First Active in Ireland and the UK	171
Figure 43: First Active and the other four largest mortgage lenders in Ireland have a combined 77.1 per cent share of the Irish mortgage market	173
Figure 44: The contribution of residential lending to First Active's loan book increased slightly between 2001 and 2002	175
Figure 45: A SWOT analysis of First Active	179
Figure 46: Gross advances in the Irish mortgage market will increase at a compound annual growth rate of 8.1 per cent between 2003 and 2007 and amount to EUR 18.2 billion by the end of the period	181
Figure 47: The size of the Italian owner occupied sector has increased by six per cent in under ten years to account for 80 per cent of dwellings in 2002	187
Figure 48: Banca Woolwich's branch network is dwarfed by networks belonging to its larger competitors	189
Figure 49: With the exception of a slight dip in new business in 2002, Banca Woolwich has grown impressively over the last five years, 1998-2002	190
Figure 50: The top five lenders have a combined 42.7 per cent share of the Italian mortgage market. Banca Woolwich holds an additional 3.1 per cent share	192
Figure 51: 80 per cent of Banca Woolwich's mortgage customers are introduced by its partners and intermediaries. Of these, Gabetti is by far the most significant	195
Figure 52: A SWOT analysis of Banca Woolwich	197
Figure 53: Gross advances in the Italian mortgage market will increase at a compound annual growth rate of 8.3 per cent between 2003 and 2007 and amount to EUR 78.6 billion by the end of the period	199
Figure 54: Dutch property price increases have slowed over the last two years	205
Figure 55: At the end of the first half of 2003 Rabobank's total assets stood at more than EUR 400 billion	209
Figure 56: Rabobank has decreased its number of member banks despite a more than 100 per cent increase in its number of members	211
Figure 57: A SWOT analysis of Rabobank	216
Figure 58: Gross advances in the Dutch mortgage market will increase at a compound annual growth rate of 5.0 per cent between 2003 and 2007 and amount to EUR 127.9 billion by the end of the period	218
Figure 59: A low nominal mortgage rate and a relatively high rate of inflation combine to produce a low real mortgage rate in Spain	225
Figure 60: Banco Popular has grown its distribution network and increased its headcount over the last five years	229
Figure 61: Banco Popular and the other four largest lenders in Spain hold a combined 32.9 per cent share of the Spanish mortgage market	231
Figure 62: Boosted by the acquisition of the remaining share of Banco Popular Hipotecario (BPH), Banco Popular's total loans and discounts during 2002 surpassed EUR 34 billion	233
Figure 63: Banco Popular has spread its lending across Spain thus minimizing its vulnerability to any regional fluctuation in the property market	234
Figure 64: A SWOT analysis of Banco Popular	237
Figure 65: Gross advances in the Spanish mortgage market will increase at a compound annual growth rate of 9.6 per cent between 2003 and 2007 and amount to EUR 112.1 billion by the end of the period	239
Figure 66: Though increasing the number of dwellings built per year in Sweden remains low	245
Figure 67: Significantly decreased staffing costs have contributed to stronger operating profit at Spintab	250
Figure 68: Spintab has a 30.1 per cent share of total lending by mortgage credit institutions in 2002	252
Figure 69: A SWOT analysis of Spintab	255
Figure 70: Gross advances in the Swedish mortgage market will increase at a compound annual growth of 3.3 per cent between 2003 and 2007 and amount to EUR 28.1 billion by the end of the period	258
Figure 71: UK house price increases have stabilized in 2003 although they remain fairly strong	266
Figure 72: Northern Rock is a great deal smaller than the big UK high street banks in terms of consolidated total assets, 2002	273
Figure 73: The top five lenders in the UK mortgage market have a combined 60.4 per cent market share. Northern Rock has a 4.5 per cent share	275
Figure 74: Northern Rock has grown faster than larger lenders in the UK mortgage market	277
Figure 75: Compared to the top five competitors in the UK mortgage market, Northern Rock's cost to income ratio is exceptionally low, 2001-2002	281
Figure 76: In 2003 Northern Rock is fifth most commonly recommended mortgage lender by intermediaries having been third most commonly recommended in 2002	282
Figure 77: A SWOT analysis of Northern Rock	285
Figure 78: Gross advances in the UK mortgage market will increase at a compound annual growth rate of 6.0 per cent between 2003 and 2007 and will amount to EUR 527.2 billion in 2007	287
Figure 79: Over the next five years the UK will remain the largest mortgage market in Europe judged in terms of gross advances. However, it will no longer be the fastest growing	292
Figure 80: The research methodology used to produce European Mortgages 2003	313
Figure 81: Datamonitor's core consulting capabilities	323

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