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We can continue to be positive about the mortgage market

It really does seem that the mortgage market is showing signs of improvement.  Can I even stick my neck out and suggest that one or two green shoots are emerging through the Autumn mists.

I don’t think we will ever get back to the type of ‘normal’ lending we enjoyed for (maybe) too long, but things must improve.

People are starting to stick their necks out and buy property, or even extend the property they already own.  But something must be done about the margins that lenders are enjoying. The Bank of England has revealed that these margins are the highest since records began. It smacks of lenders trying to get back into huge profits quickly and forgetting that many of them are now owned by us.

A lot of lenders have either left the market altogether or have priced themselves at such a high level because they don’t want to lend at the moment.  This means that the lenders who are left are keeping their margins high because there isn’t much competition out there. I have forgotten the number of times I have tried to source a product for a client, to find there is only one choice.

We need a return to competition… and quick.  New lenders are starting to emerge – Bank of China being one, but they are not coming into the marketplace quickly enough.





Date: 5th October, 2009
Author: Liz Hopkin


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