Borrowers hit by banking takeover |
16 2008 |
| Banco Santander's acquisition of mortgage lender Alliance & Leicester has dealt a further blow for those Britons hoping to get onto the property ladder anytime soon, it has been claimed. The deal saw the Spanish banking group, who also own UK bank Abbey, take over a struggling Alliance & Leicester, prompting shares in the lender to rally after declining rapidly on the back of reports that it was struggling with the ongoing crisis in the global credit markets. However, while shareholders will be buoyed, prospective first-time buyers may have to stay renting for longer as Santander chooses to merge the mortgages offered by the two UK lenders, thereby reducing competition. "It will obviously have an effect on how easy it is to get a mortgage," explained Pauline McCallion, editor of Your Mortgage. "I wouldn't say this specifically will have a massive effect on choice but it will contribute to the wider picture of what's been going on in terms of the reduction in the number of products that are out there at the moment."  |
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