Analysts are predicting a major shake-up in the mortgage market as several new lenders prepare to make a major move into the sector.
The sudden rush is predicted to benefit consumers, and is already being compared to the late eighties when lenders such as the Chase Manhattan Bank entered the market, only to be beaten out as the UK economy slumped.
The mortgage market has already been abuzz with activity since autumn as homeowners compare mortgage rate deals in search of bargains.
The new lenders include international banking names unlikely to mean much to the average homeowner such as Deutsche Bank, Lehman Bros, Bear Stearns, Citigroup and the Oakwood Group.
Their aggressive entry is tipped to drive down rates, especially in the less competed markets such as so-called “sub-prime” lending and buy-let specialist mortgages.
Sub-prime lending is the name given to the sector of the market tailored for would-be homeowners who may find it difficult to obtain credit on the high street, such as the self employed and those with poor credit ratings.
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