Shake up in store for the mortgage market
Over the past couple of years the mortgage market in the UK has gone through some very tough times, and even now traditional mortgage lenders are being increasingly strict with regards to mortgage approvals, and are putting many obstacles in the way of borrowers that do not have large deposits and excellent credit histories.
This has left many people out in the cold with regards to getting a mortgage, but there are some groups and companies who have identified this as an opportunity to jump in and shake up the mortgage market.
Earlier this month the supermarket chain Tesco announced that it would be launching its mortgage range and current accounts in 2011, having already launched its new bank, Tesco Bank. Like many other supermarkets Tesco has really diversified over the years, and now offers a range of financial services and products amongst other things. Many were no surprised to learn that the supermarket giant was intending to take a slice of the mortgage pie.
However, now another household name is going to be vying for a share of the mortgage market. The Post Office has announced that it intends to lend around £3 billion in home loans by the end of next year, and this increased competition could help to drive down mortgage rates.
A Post Office official said: “Trust in banks is low and the needs of a broad range of borrowers are not being met by the current range of deals available from traditional lenders. Our new mortgages offer customers good initial and long-term value.”
One mortgage broker said: “There are at least two or three major lenders planning to enter the market in the next year, but it will depend largely on the state of the wholesale money markets. When Tesco arrive in the market it will herald a further shake-up.”
Related Posts
Tesco to start offering loans and current accounts in 2011
Some time ago the supermarket giant Tesco announced that it was launching its own bank, which would offer, amongst other things, mortgages and current accounts, improving the choice for consumers in what has become a very turbulent and difficult market. »
Next Year Could See Supermarket Break Into Mortgages
According to a recent report the supermarket retail giant Tesco could end up breaking into the mortgage market as early as 2010, which would mean that consumers will enjoy more choice and will be able to consider a mortgage from a household name that is trusted by many people. »
Asda may enter mortgage market
For many people Asda is a place to go in order to do the weekly shop, purchase a few odds and ends, or look for bargains on some household goods and gadgets. However, like other supermarket giants over recent years, Asda has added a number of financial products to its range, such as loans, credit cards, and insurance services. It has now announced that it is thinking of entering into the mortgage market, with officials claiming that the company may be able to try and ease the currently difficult mortgage market by offering more choice for consumers.
»Reductions being seen in personal loan rates
It has been reported that finally the rates charged on personal loans rates may be starting to fall. For many this will have been a long time in coming, given that the base interest rate in the UK has been at an all time low of just 0.5 percent since last March.»
Ulster Bank aims to increase lending
Whilst many recent reports have stated that many banks across the UK are still being extra cautious with regards to lending to consumers in the current climate it has been revealed that one bank in Northern Ireland is actually trying to increase its mortgage lending, and has launched a drive that is aimed towards improving and increasing mortgage lending for consumers.»
Leave a comment
More from Mortgage News category
Ads and sponsors