Face of mortgage market could change forever

Britains mortgage industry could soon change shape forever, thanks to an influx of foreign lenders, it has been asserted.

House price falls and a difficulty in obtaining finance may have made home improvements such as conservatories more appealing, but one expert believes the lending landscape could be set for major change.

According to Currencies Direct Limited director of trading Mark OSullivan, banks from as far away as China, Israel and Sweden are looking to capitalise on the dormant state of the UK market.

He explained the presence of the companies in Britain could change the face of lending.

"It might wake up the UK banks and make them more competitive than they are at the moment," Mr OSullivan stated, adding they may come with stricter lending criteria.

The Bank of China is offering 75 per cent loan-to-value deals on mortgages of up to £1 million.

It stated it will offer loans to first time buyers, those moving home and anyone looking to remortgage.