Mortgage News
Exclusive: Two new foreign mortgage lenders to launch 2012
Legal & General has revealed it is in discussions with six potential new lenders, two of which could enter the market as early as next year.
Speaking at the Mortgage Advice Bureau conference, L&G Mortgage Club’s managing director Ben Thompson said both entrants are overseas lenders and will launch into the small to medium end of the market.
He told delegates: “There’s been a lot of commentary around the fact it’s difficult to get into the market because of the FSA licensing and so on, but that’s incorrect.”
A freedom of information request has shown that up to ten would-be mortgage lenders are waiting to see receive Financial Services Authority authorisation.
Thompson added: “We are talking to six lenders at the moment and that is a healthy number. Not all of them are small and I expect they will have impact in the market in terms of competition that might force some lenders to lend more in the first six months of next year.”
Thompson also warned delegates of the “big wall” that’s building up in the remortgage market.
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“Around £209bn of lending is sat on SVR, excluding tracker mortgages. That’s how big this wall is becoming.”
He advised brokers to talk to their clients about remortgaging, with nearly £11bn end-of-terms coming up in January 2012.