With lending conditions amongst banks in the UK still highly restricted it has been revealed that some of us may have to learn to rely on foreign banks for our financial needs until the UK lending system sees some form of improvement.

For many consumers finding a mortgage from UK lenders has become a real problem, despite the fact that the base interest rate is at the rock bottom level of just 0.5 percent.

Lenders are becoming increasingly restrictive with mortgage lending, rates are going up despite the low base rate, and finding a mortgage has become a nightmare for some, particularly first time buyers who cannot raise the high level of deposit that most lenders are asking for.

However, it appears that this gap could be filled by one of a number of foreign banks that are entering the UK market and offering to provide Brits with mortgage loans.

The latest to start offering finance to Brits is the Bank of China, and with a number of other foreign banks having already entered the market dome industry officials are now predicting that it could be the foreign banks that put an end to the loan shortage for British borrowers and provide a ray of light for groups such as first time buyers.

Officials from the Bank of China have said that the bank plans to offer both residential and buy to let mortgages to consumers in the UK.

The bank is planning to offer a residential tracker mortgage at 2.5 percent above base rate and a buy to let mortgage at a rate of 3 percent above base rate. Whilst there are a few better deals from UK banks they are very hard to come by, and officials have said that the offerings from the Bank of China are still very competitive.

One industry official stated: “The entry of Bank of China into the UK market, however tentative, has got to be positive news for a market that has been starved of choice and where lenders are increasingly able to call the shots as competition diminishes.”

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