29 Oct

More competition "very desperately" needed in mortgage market

More competition "very desperately" needed in mortgage market

Estate agents may be interested to hear that in the opinion of one expert, it is vital that more competition is established in the building society and mortgage markets.

Ed Bowsher, head of personal finance at lovemoney.com, said that new, stronger players are "very desperately" required.

He made his comments following news that the European Commission has approved the government's plans to restructure Northern Rock, creating a 'good' bank – dealing with economic activities – and a 'bad' bank to cover asset management.

Mr Bowsher said that although some smaller building societies may suffer with the introduction of larger organisations, "we need some competitors to the likes of Lloyds and Royal Bank of Scotland".

"If we are going to get a new, strong player in that market I welcome it," he added.

Mr Bowsher believes that the recovery of Northern Rock will enable customers to find good-value deals and "some of the best mortgages on the market".ADNFCR-1222-ID-19433821-ADNFCR

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