Foreign banks could change UK mortgage market

A financial expert has suggested the face of the mortgage market in the UK could be set to change forever.

With house prices having fallen and home loans being hard to come by, some may opt to improve their current property with a conservatory or pool house, rather than moving to a new dwelling

However, Currencies Direct Limited director of trading Mark OSullivan explained new lenders may be coming in from overseas that could alter the British industry forever.

Banks and mortgage providers from China, Israel and Sweden are hoping to capitalise on the slow market by offering deals to UK customers.

He explained that these firms may have stiffer lending criteria, but "it might wake up the UK banks and make them more competitive than they are at the moment".

The Bank of China has recently announced it is offering mortgages in the UK, with statistics showing it is offering up to £1 million deals with for 25 per cent deposits.