Abbey & Alliance & Leicester merger prompts mortgage fears
July 15th, 2008 by 
Guy
The merger of two of the Largest mortgage lenders Abbey and Alliance & Leicester is causing fears over a potential reduction in the customers choice.
Following the confirmation that the Abbey has made a bid for the smaller Alliance & Leicester, it has raised the fear over the potential impact on consumer interests.
While the sale of the ailing bank will bring increased confidence to the mortgage industry which is still reeling in the wake of the credit crunch.
Â
It may also bring a further reduction in consumer choice, which is already under pressure and has seen significant reductions, particularly in the mortgage market.
While both companies price mortgage products are at similar levels, Alliance & Leicester utilises a percentage fee structure in its product make up.
Historically, mergers in the mortgage market have worked,as more of a takeover of the mortgage book, with one company’s product range features disappearing altogether without bringing together the best of both product ranges.
Posted in Mortgage news | 