Mortgage market to become more competitive

Date: Friday 5th February 2010
Author: Max Freedman

Mortgages could soon become more competitive, which could result in better deals for consumers, according to one specialist.

Ben Wilkie, editor at What Mortgage, said that in his opinion, increasd competition in the market will be good news in general.

Although banks like Santander and HSBC have dominated the mortgage market for some time, more institutions will be coming out with new products and rates for prospective buyers and remortgaging customers.

The opening of three or four new banks this year will help to create a better market for customers, Mr Wilke added, as it will offer them a wider variety of choice.

"More lenders are offering more products at the moment. More companies will become more competitive as the year goes on," Mr Wilkie concluded.

His comments follow the news from Santander that its net lending in 2009 stood at £7.6 billion, which it believes to be a net market share of 69.1 per cent.