The UK mortgage market could be changed markedly by the arrival of new foreign players, it has been predicted.
Director of trading for Currencies Direct Mark O’ Sullivan commented that “at the moment the mortgage market is controlled by the big four”, with the credit crunch having “decimated” the level of choice on offer for consumers.
This dominance may be transformed by the likes of the Bank of China to the extent that up to a quarter of UK home loans will be underwritten by lenders from the country a few years from now, he suggested.
Existing UK banks may be forced to be more competitive as a result, Mr O’ Sullivan claimed.
Those keen on taking out a mortgage now may wish to see if they can get a better deal than their current one.
The Bank of China is offering home loans of up to £1 million in value, a report in the Times stated yesterday.