The mortgage market in the UK has been very competitive for a number of years, with a range of lenders vying for the business of consumers when it came to doling out mortgage loans. However, things changed radically several years ago, when the global financial crisis swept across the UK and took its toll on the financial and property markets as well as on household finances.

Suddenly, the many lenders that had been desperate to hand out money without so much as a second glance were shying away from even considering people for mortgage loans. The competition in the mortgage sector throughout the UK plummeted as a result of so many lenders severely restricting their lending levels, and suddenly many of those that would have easily been able to get a mortgage in the past found themselves being turned away from one bank after another.

Whilst things are now said to be easing up a little more following the end of the recession, things are still tight when it comes to mortgage lending and many first time buyers and other potential buyers are still struggling to get the finance that they need to purchase property. First time buyers face a double whammy, as not only are they at the receiving end of banks’ caution to hand out mortgage loans but they have also found themselves unable to get a loan because of the high level of deposit being demanded by lenders.

However, according to recent reports the competition in the mortgage market could be improved in the UK next year, as newcomers to the market make it more likely that consumers will be able to get better deals. One of the big names that is looking to enter the mortgage market next year is the supermarket giant Tesco, which is already in the throes of developing a full service bank and believes that its entry into the mortgage market could prove beneficial for consumers.

It has now been revealed that the UK arm of the State Bank of India will be launching what it describes as ‘competitively priced mortgages’ from next year, and this will be the first Indian bank to make its entry to the UK mortgage market at a time when the nation is desperate for increased competition. The bank has confirmed that it will launch its mortgage range within the next six months, which could make it easier for consumers – including first time buyers – to get the mortgage finance that they need.