As recently reported in The Guardian Newspaper is is evident that the big banks are successfully endeavoring to increase their market share of the mortgage business
Big banks look to expand | Business | The Guardian:The contraction in the mortgage market means that big banks are now providing 90-95% of all new home loans. This compares with a market share of about 60% for the largest lenders under normal conditions. The number of mortgage products on offer has also shrunk. The amount of different home loans in the market today totals 3,430, according to Moneyfacts, the financial website, compared with 15,599 a year ago.
Smaller building societies and less well-capitalised banks have reduced their exposure to the home loans business because of the difficulties of obtaining funds, as the international money markets are in effect closed to them. Big lenders such as HBOS have traditionally held a large slice of the mortgage market. But the scarcity of funds for smaller banks has led HSBC and Barclays to target home loans as an area for expansion. Barclays now claims that it had a 28% market share in the first quarter compared with only 2% a year ago.
Although the banks are necessarily much more selective in mortgage appraisals, it seems that funds are readily available for the right clients. Nevertheless, new rules make it particularly difficult for first time buyers who are being asked for deposits of up to 25% to secure the cheapest deals. This will continue to depress the rest of the housing market which it seems will remain uncertain for some time to come.
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