Bank of China makes play for UK mortgage market
The Bank of China has this week made a play for the UK mortgage market by increasing its loan-to-value ratio from 75% to 80% on residential mortgages. The rate on buy to let mortgages has been increased from 65% to 75% and for commercial mortgages from 65% to 70%. While the Bank of China may not be the most recognised name in the UK mortgage market it does offer a number of mortgage instruments with rates ranging from 2.8% on the residential side to 3.88% from the buy to let division and 4% on commercial mortgages.
It is interesting to see that the Bank of China believes the UK market has value at the current level and is willing to take more of a risk to attract new business. Whether this will impact upon the overall market in the current economic melee remains to be seen but it is certainly a positive move by one of the strongest banks in the world.
The Bank of China operates in the UK through direct sales to the UK population as well as through a network of financial advisers and brokers. Many brokers have been complaining about a lack of competition in the UK mortgage market and will be happy to see movement in this particular area.
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HSBC set to attack the UK mortgage market
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Mortgage rate rip-off as banks slow to react
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Number seeking mortgage advice up by 24%
It has been revealed that in the first half of 2010 there was a near 25% increase in the number of people seeking mortgage advice before deciding whether to dip their toe into the property market. Historically the mortgage market has been fairly straightforward and independent financial advisers have often been overlooked in favour of "straightforward" mortgage arrangements. However, the onset of...Read More
Second-time buyers struggling to move from starter home
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