Is competition falling in the UK mortgage sector?
Even though there has been some positive movement in the UK mortgage market it is safe to say that the level of current investment is nowhere near that seen just before the onset of the recession. We have also lost a number of influential firms in the UK mortgage sector and there is some concern that competition may be reduced as and when the economy is back online and the sector starts to move ahead.
As we have seen over the last few weeks, while there are many headline grabbing mortgage deals apparently on offer, very few people will have the necessary deposits available to take advantage of these "rock bottom rates". Whether mortgage companies are trying to inject a self-feeding prophecy of new confidence into the sector, which would then filter through to demand and liquidity, remains to be seen. The truth is that the UK mortgage sector is still very much under pressure and despite profit margins apparently being increased over the last few weeks, business is still very difficult and competition is nowhere near as intense as it has been.
Regulators will be keeping a very close eye on the UK mortgage sector and looking to inject more competition into this arena as and when applicable.
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