Realpricecomparison.com has claimed there are only 71 lenders offering variable mortgages now compared with 96 a year ago
It argues that the launch of foreign mortgage lenders is vital in boosting competition in the UK mortgage market. Bank of China, Sweden’s Handelsbanken and Israel’s Bank of Leumi are the latest foreign-owned lenders to launch in the UK
However, many lenders are now open again for fixed business including building societies such as Furness, Leek United, Saffron and Newbury plus broker-focused group ITL Mortgages. Those that have stopped offering fixed mortgages include Bristol & West, Bradford & Bingley, Giraffe and Bank of Ireland in mainland UK
Bank of China has launched tracker loans for personal borrowers and buy-to-let customers with the rate for personal borrowers currently at 3% and 4% for buy-to-let. Borrowers though need a 25% deposit and have to pass a personal interview at one of Bank of China’s branches in Glasgow, London, Manchester or Birmingham
Handelsbanken has around 50 branches, and focuses on professionals and high net worth individuals, while Israeli-owned Bank Leumi (UK) concentrates on high net worth individuals and professionals with a minimum advance of £500,000 and LTV of 70%. Its tracker rate is linked to LIBOR and is currently 2.56%
Francis Ghiloni, commercial director at realpricecomparison.com said: “It is encouraging that foreign banks believe there are opportunities in the UK market as the past year has seen a dramatic collapse in the number of lenders open for business.
