Santander mortgage lending freeze.

It is being predicted that the recently announced Santander mortgage lending retreat could push the UK mortgage market into a crisis.

Santander have become a significant lender in the UK mortgage market since the 2008 credit crisis and its decision to scale back lending is of major concern.

Britain's housing market is already under pressure because of a mortgage drought and now the fear is Santander's intention to significantly reduce lending to UK home buyers could be the final straw that pushes the market into crisis.

It has been recently estimated that Santander mortgage lending has dropped by over 10 per cent in the last few months and the concern is it could drop even further as the eurozone crisis intensifies.

With other UK lenders either being unwilling or unable to fill the gap, the mortgage market could end up freezing up which would bring the UK property market to a standstill.

Bob Pannell the Council of Mortgage Lenders chief economist, has commented saying that market confidence and funding could end up being negatively affected by the continuing eurozone crisis, which means a quiet UK mortgage market could continue for some time to come.

A Santander spokesperson has commented saying that while the lender remains committed to its UK mortgage business, it is adopting a more cautious approach in certain sectors.

Deal Direct recommend that those looking for a competitive mortgage deal act now. If the mortgage market does seize up competitive offers could be difficult to find.

If you are looking for a Santander mortgage or a comparison against other lenders offers, call Deal Direct today.

Our skilled advisers will source a competitive deal for you.