A recent report revealed that HBOS's new mortgage share declined from 21 per cent to eight per cent of late - and media figures speculate that the provider could soon enter into an aggressive price-lowering campaign.
"The mortgage market is a very dynamic market; it's very changeable, and it's a very competitive market as well," Mr Dean said.
"So if HBOS does take an especially aggressive stance to pricing, other lenders will probably find a way of … coming up with something as equally as good for their customers … It's a very competitive market and lenders are very, very aware of tightening profit margins.
"So there's plenty of space in the market for competition … And there are new entrants in the market all the time showing that there's clearly a demand by consumers for other lenders," he concluded.
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