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Home.co.uk

News: Mortgage Market Welcomes Back GEMHL

Tue, 10 Nov 09

Mortgage experts are hopeful that competition in the UK mortgage market will increase, following the announcement that GE Money Home Lending is set to offer purchase loans from this week.

Among new deals GE Money Home Lending will introduce is a one-year discount deal, with an interest rate of 4.99% and a fee of £995 for a loan of up to 70% of a property’s value.

Other deals on offer are a two-year fixed deal at 5.59% and a three-year fixed deal at 6.04%.

GE Money Home Lending had focused its mortgage business only on remortgaging activity during the housing market slump. These latest deals mark a return to the purchase market.

According to The Times brokers anticipate that GE Money Home Lending’s re-entry into the purchase market will bring some much needed extra competition for existing lenders.

Aaron Strutt, of Trinity Financial Group, told The Times: "It is good to see lenders coming back in to the market as this can only put more pressure on the high street banks to lower rates. Not everyone has the luxury of getting a market-leading rate. It is only going to be the very prime business that lenders are fighting for at the moment."

 

By Joe Lepper

See Also: Mortgages

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