Lenders may decide to reduce rates in reaction to greater competition entering the mortgage market, it has been suggested.
Ben Wilkie, editor at What Mortgage – a monthly magazine first published in spring 1982 – noted providers will be looking to push forward and promote themselves as the best-buy lender in the sector.
Mr Wilkie explained this jostling for position has not been too apparent in recent years – but this is beginning to change as companies become more willing to lend to individuals looking to make their way up the property ladder.
He was speaking in response to HSBC’s recent announcement that it has approved more than 15,000 mortgages for first-time buyers between January and May this year.
These figures followed the bank’s confirmation at the beginning of the year that 2012 would see it making around £15 billion in mortgages available to customers.
Mr Wilkie observed people may find property investment continues to offer good growth returns, adding: “I think that those people who want to buy will buy because prices are not really falling any further.”
