Mortgage News
SBI confirms launch date UK for residential mortgage market
The State Bank of India, the country’s largest mortgage lender, has confirmed plans to the FT to start lending UK residential mortgages in August this year.
The 59.41% state-owned provider launched a buy-to-let tracker loan in mid-September last year through intermediaries at 3.99% and confirmed its residential offering would also go through brokers.
The provider already offers savings and investment products in the UK and unlike other new lenders which have done little to dent the market, SBI may be in a better position if it can use its retail deposits to fund lending. The bank boosted its shared of the savings market last year by offering a competitive 5.75% on a five year term and its buy-to-let loan rate remained more competitive than many.
SBI has been in the UK for 90 years, traditionally serving the Indian ex pat community, and grew its branches from 7 to 10 last year.
However, commentators suggest the bank is likely to take a conservative approach to mortgage lending.
Rajnish Kumar, head of the State Bank of India UK, said that the credit crunch and tightening financial regulation have opened opportunities in UK mortgage lending to smaller banks.
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The market has become more “prudent,” he said, fitting the bank’s risk model and appetite.