Mortgage lenders increasing activity, suggests London Mortgage broker, London Mortgage Advice Friday, 9th October 2009

Some high profile lenders have been significantly reducing their rates lately and indeed for this they should be praised.

Nationwide, Northern Rock, Woolwich, Cheltenham and Gloucester and Abbey and have all announced rate reductions over the past week.

This is a move forward and these positive steps certainly make for refreshing news following the barrage of criticism suffered by lenders over the past months.

It suggests that the banks and building societies may be launching products with a view to competition, after a lengthy period focusing solely on risk.This indeed offers some hope to consumers who have struggled to find a decent mortgage rate. Although a full return to a competitive mortgage market is certainly a long way away off, these changes are a step in the right direction.

Hoevever, the loan to values for most of the products remain low, meaning borrowers still need to raise a large deposit to secure the top deals. Lending is essentially based on risk alone at the moment, although it remains to be seen how long it will take for lenders to cut rates, whilst at the same time being a little more accommodating with their loan to values.