News

Housebuyers could save up to £600 a year on their mortgage repayments with the prediction that a raft of new lenders will shortly enter the market.

According to a recent article in The Telegraph, a raft of new entrants to the mortgage market such as NBNK and Home & Savings Bank will provide increased competition, in turn, reducing interest rates to less than 1.5%.

The drivers behind the new entrants are said to be access to cheap funding from the Bank of England and a renewed appetite to lend to new and existing homeowners by the finance sector.

Scott Neal, marketing manager at LPC Living which is owned by investment vehicle the Pervaiz Naviede Family Trust, welcomed the news saying “Competition in the mortgage market has been severely hampered since 2007 following the winding down of some banks and the amalgamation of others.

“Encouraging fiercer competition between banks with new entrants to the market can only serve to help those looking to move or buy their first home as well as the construction industry which contributes around 7% towards the UK’s GDP.”