New players should enter the mortgages market to offer greater options to borrowers and boost competition, said Housing Minister Grant Shapps, calling upon prospective lenders to join the fray.
Mr. Shapps is scheduled to attend a meeting of first-time buyers this week and will discuss ways to boost mortgage lending to this group, in order to help them climb the property ladder.
The key issue likely to be focused on is the level of competition in the mortgages market.
“The lack of competition in the mortgage market is absolutely the key thing to tackle”, said Mr. Shapps.
When asked if he would encourage high-street retailers to participate in the mortgages market, Mr. Shapps said: “If Marks and Spencer offered mortgages I would welcome it”, quoted The Telegraph.
Mr. Shapps latest move comes in the wake of data released by the Council of Mortgage Lenders (CML), which shows that lending stabilised in 2010 after two years of sharp decline in a row.