Homeowners looking to take advantage of falling prices and move up the property ladder have been hit by the news that Banco Santander from Spain has reached a takeover deal for Alliance & Leicester.
Given that the Spanish group already owns Abbey, concerns have been expressed that this latest development will further reduce the number of
mortgage products available to
UK borrowers, with the
market having already shrunk markedly as lenders look to shield themselves from the effects of the
credit crunch.
"It will obviously have an effect on how easy it is to get a mortgage," explained Pauline McCallion, editor 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."
With many people therefore struggling to obtain a loan which would allow them to move into a bigger home, space may soon become an issue, thereby making safe storage an attractive option.
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