In a study published today by mform.co.uk, HSBC was named the most consistently competitive mortgage lender of 2008, with Nationwide coming fifth. In the same study last year the top five were all building societies.
John Charcol senior technical manager Ray Boulger says: “Banks account for around 70 per cent of the mortgage market at the moment, but that figure could well rise going into 2009. I’d think it was very likely that HSBC come out on top again next year.”
With the Government keen for the bailed out banks to enter into mortgage lending, building societies may find it difficult to compete, say brokers.
London & Country head of communications David Hollingsworth says: “You can’t discount the big banks. HBOS will be looking to strengthen its position as it goes into its merger with Lloyds.”
But mform.co.uk marketing and business development director Francis Ghiloni says despite a potential decrease in volume, he expects building societies to continue to offer competitive rates.