A new report has found that the six biggest high street lenders approved more than nine in ten mortgages granted in 2009.
The Council of Mortgage Lenders' (CML) data reveals that the share commanded by the top six lenders has increased from 79.4 per cent in 2008 to 92.2 per cent last year.
Movers and
first time buyers could find that there is little choice in mortgages, as well as tougher restrictions.
According to the CML, Lloyds retains nearly a quarter of the mortgage market, having advanced £34.7 billion worth of mortgages.
Despite improving market conditions, lending is expected to get even tighter if new Financial Services Authority proposals are put into force.
Last year, the industry watchdog presented new guidelines on mortgage approval procedures, calling on lenders to perform checks and proposing that fast-track and self-certification mortgages be banned.
The CML believes that the current state of lending could be further affected by such measures.
In its September newsletter, it commented: "Excessive consumer protection – particularly in the current risk-averse lending environment – will lead lenders to step back from perfectly sensible lending markets, such as interest only mortgages."
See Also: Property News (6701)
Date Published: 10 September 2010
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