Assetz mortgage expert says banks are securing excessive margins

Date:Monday 27th September 2010
Author: Susanna Kavka

Banks in the UK are making excessive profit margins on home finance deals, according to an Assetz mortgage commentator.

Stuart Law, chief executive officer of the firm, suggested the government has an important role to play in this situation when it comes to certain organisations.

"They should either admit that they want the banks to be overcharging or they should actually, as the majority shareholder, make the banks lend on better terms," he said.

Mr Law pointed out that the government may be happy about the banks making "excessive margins" on such lending, since it means the taxpayers' money may be returned to the state more quickly.

His comments were made in response to an article in the Daily Mail last week, which cited a study by Autonomous Research as evidence that British banking institutions add larger margins than anywhere else in the world.

The Assetz mortgage expert agreed such businesses are charging a large amount of money for their services currently.Assetz: It is up to the government to improve bank lending to homebuyers