'Mortgage price war could reignite housing market'

By Jonathan Dawes, Tue 19 Aug 2008 - Published in Mortgages

The two biggest mortgage lenders in the UK, Abbey and Halifax, have entered a price war in an attempt to attract new mortgage customers, according to the Times.

David Doulton, director at the Fair Investment Company, has welcomed the news, which he says is a good sign for borrowers and the stagnant housing market.

He claimed with the credit crunch tightening its grip on British householders, it was important mortgage lenders did what they could to make it easier for those looking at taking out new home loans.

Mr Doulton said: "It is good to see that they are taking their responsibility seriously and helping to bring rates down."

He also stated he hoped other lenders would follow the example set by Abbey and Halifax.

Earlier this month, the Centre for Economics and Business Research said on average families in the UK were getting poorer as inflation rises were outstripping earnings growth.

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