Will mortgage market become more competitive?

first-time buyers may wish to approach the largest financial services providers when it comes to getting a mortgage, as these are likely to be better able to offer a competitive deal, one sector commentator has asserted.

Ben Wilkie, editor at What Mortgage, said the larger and more financially secure a bank, the better position it was in to stay competitive throughout the recession.

His comments come after Santander increased its net mortgage lending in the UK to £7.6 billion last year, estimating that this represents a net market share of 69.1 per cent.

However, its share of the total residential mortgage market in the fourth quarter of 2009 stood at 13.5 per cent.

"Whether it is good for the market, I think generally speaking the more competition in the market, the better. If no-one else is lending then it is only fair that the ones that are, get more business," Mr Wilkie stated.

While this may be good news for some buyers, other Britons may still find they have not yet been able to build up a big enough deposit to buy a home.

Such people may instead wish to consider flats to rent in Wandsworth or another part of London, which are likely to be more affordable than property to buy in the same area.

Written by Martyn Glynn

Published 9th February, 2010

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