“Mortgage intermediaries are set to face yet more challenges over the next few years. The current mortgage market environment is lacklustre although there is positivity to be found in its increasing stability. The threat from direct sales is set to adversely affect the intermediary business in the short-term. Moreover, the need to be compliant with regulatory changes will only serve to further test many intermediary businesses to their limit. In order to survive this difficult period, intermediaries must show that they offer an invaluable service to the mortgage market and focus on areas such as buy-to-let in the near-term.”

– Stephanie Seenan – Financial Services Analyst

“The mortgage market looks set to tread water for the time being with no major increases or decreases expected in mortgage take-up or property prices. Mortgage providers, however must brace themselves for a difficult time as the government looks to clamp down further on risky lending and potentially limit high LTV loans. Innovation is the key to success in times like these. On the downside however, some mortgage providers are starting to increase their standard variable rates as they look to improve their liquidity position which may see many home owners struggle to find the extra cash needed for mortgage payments.”

– Stephanie Seenan, Financial Services Analyst

“Over the past two years car finance providers have improved their finance penetration of private new car sales, which is helping to drive profitability in a difficult trading environment. Maintaining this level of penetration will be crucial to the market’s success going forward.”

– Sarah Hitchcock, Senior Analyst – Financial Services

“Should the unemployment rate rise further in 2012, credit defaults and impairment costs will also increase, and loan rates will come under pressure. However, given that lenders are currently benefiting from high margins on consumer credit products, there is arguably some room for manoeuvre and scope for tactical pricing.”

– Sarah Hitchcock, Senior Analyst

This report looks at British lifestyles in 2011. It looks at the impact of the continued economic situation in the wake of the recession. Unemployment and uncertainty in the housing market as well as low interest rates continue to impact on consumer confidence levels but how does this play out across the FMCG markets and other services such as travel and finance? What does this mean for the next five years?

The report also looks at British lifestyles through the eyes of the consumer. In which sectors do people notice price hikes the most and how does this shape the way in which they shop in those sectors? How are shopping habits changing as consumers adjust to the rising cost of living in combination with their new or strained financial circumstances and what impact does this have on how happy they are? British Lifestyles 2011 also delves into the impact of money on happiness and the implications of this on impulse purchasing.