One of the most sophisticated mortgage market in the whole world is that of UK, since it offers to its consumers approximately 4,000 solutions and products. The UK mortgage market is also one of the most competitive markets, in which the need is for ever growing especially for lenders to come up strategies that attract even more consumers. In this background, innovation is ultimately the deciding factor, the one that differentiates the winners from the losers.

Unlike other types of mortgage market in the world, where the state acts as regulator, it is not the case for the Mortgage market of UK. Here the state does not interfere in the mortgage market, nor do other state fund entities. Because of poor economic conditions in 2005, the mortgage market in UK contracted more in it has been predicted. As a result an imminent slowdown followed, in the total secured lending mortgage market for that year. The lowest observed market share from was in 2003 to 2004, 0. 6 percentage point compared to 1. 3 percentage points in the previous period.

In 2004 Lloyds TSB managed to make a better customer relationships, which soon gained market share, which meant moving into second place in terms of advances. On the other sine, the only lender in the top ten was Barclays, that later witnessed a decline in both mortgage book and also new mortgage business.

The process of Mortgage market in UK has lenders charging a valuation fee for a chartered surveyor. The surveyor visits the property and makes sure that the real estate is worth just enough so as to cover the mortgage amount. This however, is not a full survey. Such type of survey is not a full survey, which is also the reason this first survey is unlikely to identify all the defects a real estate buyer has to be aware of.

There are different types of mortgages in the UK:

• Repayment mortgages- paying off a little of the debt, each month, as well as interest on the loans. After completion the mortgage can be cleared.
• Endowment Mortgages- provided to life insurance and saving funds to pay off the loan at the end of the term, 20-25 years.
• Individual Savings Account (ISA) mortgages- similar to endowments, such an Individual Savings Account is used as the method to repay the loan.
• Pension mortgages- like both ISA and endowment mortgages, these mortgages work on the concept that on retirement pensions provide tax-free cash and so the loan is paid out of that tax-free lump sum at the end of the mortgage term.