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Santander move 'should provide mortgage market stability'
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Yesterday's move by Santander to buy out British lender Alliance & Leicester (A&L) is helpful to the British housing economy, said a professional mortgage intermediary today.
The Association of Mortgage Intermediaries (AMI) believes that although the consolidation of the market could lead to a restriction in choice for the consumer, if the industry becomes stronger then it will "ultimately benefit customers".
Spanish banking firm Grupo Santander, which already owns British bank Abbey and has the biggest market share of all banks in the Eurozone, put in a £1.26 billion bid for the former building society yesterday.
Director general of the AMI Chris Cummings said:"This potential deal represents positive news for the UK mortgage market.
"It is pleasing that a global player, like Santander, is willing to invest more capital in the UK at this time."
Moneyfacts commented that the possible reduction of consumer choice is already under pressure, and the loss of A&L's better offers over Abbey's current options could be less favourable for the customer.
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