29
Oct
More competition "very desperately" needed in mortgage market
Estate agents may be interested to hear that in the opinion of one
expert, it is vital that more competition is established in the
building society and mortgage markets.
Ed Bowsher, head of personal finance at lovemoney.com, said that
new, stronger players are "very desperately" required.
He made his comments following news that the European Commission
has approved the government's plans to restructure Northern Rock,
creating a 'good' bank – dealing with economic activities
– and a 'bad' bank to cover asset management.
Mr Bowsher said that although some smaller building societies may
suffer with the introduction of larger organisations, "we need some
competitors to the likes of Lloyds and Royal Bank of
Scotland".
"If we are going to get a new, strong player in that market I
welcome it," he added.
Mr Bowsher believes that the recovery of Northern Rock will enable
customers to find good-value deals and "some of the best mortgages
on the market".