The Times report that the days of great mortgage deals could be coming to an as Tesco Bank, an arm of the supermarket chain, stopped offering new loans this week. It plans to sell its £3.7 billion mortgage book and its 23,000 customers will be switched to another lender.
Aaron Strutt, product director at Trinity Financial, told The Times: “Some of the lenders have told us that they are struggling to make a large enough profit and that there is too much competition.
“With property sales down and product transfers [where borrowers move to a new deal with the same lender] making up such a large part of the remortgage market, it is not surprising that the newer entrants to the market are struggling. The bigger lenders have the funding power and processing systems to put the small lenders under real pressure.”