The UK mortgage market is retaining its competitive edge, according to an industry expert.
Christopher Dean, from the Council of Mortgage Lenders (CML), describes the current market as "dynamic", with "plenty of space for competition" - and adds that if a leading provider such as HBOS did decide to aggressively lower charges, other companies would be forced to follow suit.
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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