Is The UK Mortgage Market Starting To Fall Apart?
It may be one of the most competitive markets in the world but it appears that the UK mortgage sector is actually reducing in size after news that Egg has withdrawn from the market. Egg parent Citigroup has today announced the change in policy for a company which currently has over 50,000 mortgage customers. This follows hot on the heels of Citigroup’s decision to close the doors on its sub-prime loan business.
While the withdrawal of Egg itself is not a major loss in the overall picture, the fact that competition in the UK market is reducing is more of a worry. This comes at a time when finance costs are climbing and many home owners in the UK are in serious financial difficulty. There are concerns in the market that Egg may not be the last to leave the sector with more known to be reconsidering their positions.
The seriousness of the situation is reflected in the fact that mortgage lenders are increasing their rates when even they know they should be reducing them where possible. They seem to have their hands tied at the moment as many smaller mortgage companies are finding the current conditions very demanding to say the least.
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