Competition 'returning' to mortgage market
Property professionals
30th March 2009
Competition is gradually returning to the UK mortgage market, it has been claimed.
According to Andy Pratt, chief operating officer at independent mortgage advice provider Alexander Hall, lenders are becoming increasingly competitive as they attempt to gain a bigger share of the market.
Mr Pratt also said that the interest rate is unlikely to be reduced further than the current level, allowing mortgage lenders to offer more attractive products.
"The interest rate is probably not going to go any lower ... so what you are starting to see is a bit more competition coming in to the market between the lenders," he commented.
Recently, the British Bankers' Association reported that the number of homeowner loans approved last month increased by more than 16 per cent compared to January.
However, mortgage approvals remained almost one-third (30.6 per cent) down on the previous year.
Research by Moneyfacts also found that 21.1 per cent of lenders questioned intend to pass interest rate cuts to borrowers.
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