Banks corner mortgage market

Leading high street banks account for the majority of homeowner lending as a result of a contraction in the market after the Northern Rock debacle, according to the Guardian.

Research carried out by the paper shows that Barclays, Lloyds TSB, the Royal Bank of Scotland and Abbey are claiming they account for more than 68 per cent of total lending.

The continued rise of high-street banks has been put down to their size, which has enabled them to cope with difficulties in inter-bank lending and has also allowed them to remain competitive in a shrinking market place.

According to the Independent, gross lending fell by almost a third in the first-half of the year and demand for new loans dropped by nine per cent between May and June.

Simon Rubinsohn, the Royal Institute of Chartered Surveyors'' chief economist, told the paper: "Loans for house purchases remain subdued, with first-time buyers under particular pressure."

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