20 Mar

Smaller lenders 'benefiting from crunch'

Smaller lenders 'benefiting from crunch'

The landscape of the mortgage market has changed as a result of the credit crunch, moneyfacts.co.uk has suggested, something that has meant smaller firms are offering improved deals.

According to the organisation, bigger mortgage lenders have been hit hardest by the global credit squeeze, as they relied upon the money markets to finance their services.

In comparison, smaller firms can offer more "competitive" deals and these are in some cases subsidiaries of larger outfits.

While funding issues are likely to have affected the big institutions, it said, consumer loyalty also comes into the equation.

Mortgage analyst at moneyfacts.co.uk Denise Harvey said people will see the positives of hunting down smaller mortgage providers.

"In a time when many are struggling to find a suitable mortgage these results show that it is definitely worth looking around for the best deal. Going for a smaller, less well known lender may well save you money," she commented.

The large US lender Thornburg Mortgage has to find more than $1 billion (£0.5 billion) in the next week to stay in business, the Guardian has reported.ADNFCR-1222-ID-18518947-ADNFCR

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