Europe Home Mortgage Finance Market - Growth, Trends, COVID-19 Impact, and Forecast (2022-2027)

The Europe Home Mortgage Finance Market is segmented By Application (Home Purchase, Refinance, Home Improvement, and Others), By Providers (Banks, Housing Finance Companies, and Real Estate Agents), and By Interest Rate (Fixed Rate Mortgage Loan and Adjustable Rate Mortgage Loan)

Market Snapshot

Europe Home Mortgage Finance Market
Study Period: 2022-2027
Base Year: 2021
CAGR: >6 %

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Market Overview

The home mortgage finance industry in Europe witnessed a significant decline during 2020, owing to the outbreak of the COVID-19 pandemic. This was due to the lockdowns imposed by the government that led to the shutdown of various businesses which in turn led to a huge job loss and unemployment in Europe. Being quarantined at home people were not able to complete their day-to-day needs because of this their income was stopped. Tenants had to move to their hometowns because having no jobs paying rent was getting difficult each day for them which in turn made it difficult for the property owners to repay their loans. Also, because of unemployment people were not ready to opt for home loans, home mortgages, or any other service related to it which resulted in a decline in the demand for this market.

Out of the various forms of investment, residential investment, or investment in real estate is still a very popular investment option not only in Europe but all across the globe. Housing loans account for approximately 77% of total adjusted loans. The growth rate of lending to households has gradually increased over the years to reach a high of 4.2% in August 2021. Meanwhile, the Euro area bank interest rate on loans for house purchases has moved steadily downwards from 3.9% in August 2011 to 1.3% in August 2021. Increase in the affordability of houses and adoption of housing finance services among individuals and businesses for various purposes such as purchasing new lands, buying new houses, and various residential construction projects is expected to drive the growth of this market during the forecasted period.

Scope of the Report

Housing Finance is a type of lending service that offers money to purchase new properties such as a home or land to the end users. This helps individuals and businesses to purchase these housing properties without giving the entire buying price at once. The person borrowing this money repays the loan amount and interest up to the specified number of years.

The Europe Home Mortgage Finance Market is segmented By Application (Home Purchase, Refinance, Home Improvement, and Others), By Providers (Banks, Housing Finance Companies, and Real Estate Agents), and By Interest Rate (Fixed Rate Mortgage Loan and Adjustable Rate Mortgage Loan)

By Application
Home Purchase
Refinance
Home Improvement
Others
By Providers
Banks
Housing Finance Companies
Real Estate Agents
By Interest Rate
Fixed Rate Mortgage Loan
Adjustable Rate Mortgage Loan

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Key Market Trends

Increased Number of Salaried Individuals is Driving the Market Growth

The increasing number of business-class or salaried individuals are now opting for housing mortgage loans owing to the realization that residential rental payments are equivalent to the EMIs is primarily driving the housing mortgage market in Europe. Also, various schemes formed by developers or builders, and the government such as late EMI payments and construction-linked plans, are also leading to market growth.

Number of Persons Employed

Increase in Demand for Housing Over the Years is Driving the Growth of the Market

The high demand for housing reflected the low-interest rate environment combined with changing preferences of consumers due to the COVID--19 pandemic. Strong capital and liquidity positions of the European banks have enabled them to fulfill, to a great extent, the demand for housing, expanding their exposures toward mortgage loans. The supply of housing was not able to keep up with the demand due to a lack of housing investments in previous years, construction constraints as well as supply-chain disruptions caused by the pandemic. This in turn resulted in a much high growth rate in house prices.

Average House Prices

Competitive Landscape

Europe's Home Mortgage Finance Market is fragmented in nature. It has the presence of a large number of considerable regional and local players in the market. Some of the major players in this market are Rocket Mortgage, United Shore Financial, Aareal Bank, Bank of America, and Barclays Corporate Banking.

Major Players

  1. Rocket Mortgage

  2. United Shore Financial

  3. Aareal Bank

  4. Bank of America

  5. Barclays Corporate Banking

  6. BNP Paribas

  7. Citibank Europe PLC

  8. Crédit Agricole

  9. Deutsche Bank AG

  10. Goldman Sachs

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Recent Development

  • November 2022: Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies today introduced a conventional loan option for Americans who are interested in purchasing or refinancing a manufactured home.
  • November 2022: The Council of Europe Development Bank (CEB) approved four new loans worth Euro 232.5 million to boost affordable social housing development and other social sector development. Under this, it offered Euro 25 million in loan to Kosovo to finance the 'Adequate Social Housing Programme' aimed at establishing a sustainable social and affordable housing system in the country.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Home Purchase

      2. 5.1.2 Refinance

      3. 5.1.3 Home Improvement

      4. 5.1.4 Others

    2. 5.2 By Providers

      1. 5.2.1 Banks

      2. 5.2.2 Housing Finance Companies

      3. 5.2.3 Real Estate Agents

    3. 5.3 By Interest Rate

      1. 5.3.1 Fixed Rate Mortgage Loan

      2. 5.3.2 Adjustable Rate Mortgage Loan

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Rocket Mortgage

      2. 6.2.2 United Shore Financial

      3. 6.2.3 Aareal Bank

      4. 6.2.4 Bank of America

      5. 6.2.5 Barclays Corporate Banking

      6. 6.2.6 BNP Paribas

      7. 6.2.7 Citibank Europe PLC

      8. 6.2.8 Crédit Agricole

      9. 6.2.9 Deutsche Bank AG

      10. 6.2.10 Goldman Sachs*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Europe Home Mortgage Finance Market market is studied from 2022 - 2027.

The Europe Home Mortgage Finance Market is growing at a CAGR of >6% over the next 5 years.

Rocket Mortgage, United Shore Financial, Aareal Bank, Bank of America, Barclays Corporate Banking, BNP Paribas, Citibank Europe PLC, Crédit Agricole, Deutsche Bank AG, Goldman Sachs are the major companies operating in Europe Home Mortgage Finance Market.

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