State Bank of India to Enter UK Mortgage Market

According to a recent article in Money, the State Bank of India (SBI) plans to enter the British mortgage market.

This bank, which is state-owned and considered to be the biggest in India, is set to start its business in the UK in the beginning of 2011; the lender is already present in the country as a savings provider.

Commenting on the upcoming move, Mr. Kumar, SBI UK chief executive, said that "in the next six months we'll be going into the UK mortgage market - I believe we're the first Indian bank to do this." He explained the initiative by favourable market conditions, which opened up opportunities for smaller lenders.

UK consumers and mortgage brokers warmly welcomed the news as the existing UK banks are still reluctant to improve lending and do need increased competition to help borrowers get on a property ladder.

As for now, you can still use comparison websites to browse the best-selling residential mortgage deals available from UK banks and building societies. You are strongly recommended to visit the lender in person before applying for a home loan.