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.
Share this..
Related stories
FSA to ban self certificated mortgages
The Financial Services Authority (FSA) has announced plans to ban so-called self certified mortgages which had become very popular prior to the ongoing credit crunch. This is a situation which is set to hit the self-employed more than any other area of the UK economy, many of which have "lumpy" income which had led to a rise in demand for this type of mortgage. However, the situation has changed d...
Read MoreShould you be looking towards a fixed rate mortgage?
Over the last few months we have seen competition increase in the UK mortgage market which has led to a number of standard variable mortgage rates falling to very attractive levels. This has also impacted upon fixed rate mortgages which have also fallen over the last few months. So is it now the time to look towards switching from a standard variable rate mortgage to a fixed-rate mortgage? Even...
Read MoreScottish homeowners making mortgage overpayments
It has been revealed that 32% of mortgage holders in Edinburgh than 24% of those in Glasgow have been overpaying their mortgages in an attempt to take advantage of relatively low UK mortgage rates. The report by Lloyds banking group confirms that UK consumers are taking heed of the economic downturn and the resulting low interest rates which have impacted upon a number of financial markets. It...
Read MoreBuilding society mortgage lending falls while savings rise
Building societies saw a rise in savings taken in February, but mortgage lending fell as the credit crunch and a slowing property market take effect.Building society gross lending stood at £3,860 million in February down 5.8 per cent from January and down 8.1 per cent on last year.Net lending taking into account repayments fell to £974 million in February 2008, a fall of 31....
Read MoreNationwide shocks the UK mortgage market
Despite promising that Nationwide mortgage holders would never pay more than 2% above the Bank of England base rate, one of the U.K.'s best-known mortgage providers has turned about face this evening. From Thursday those applying for a mortgage with Nationwide will not be able to take the base mortgage rate which is currently 2.5% and will instead be passed onto a new standard mortgage rate which...
Read More