Consumers welcome the dominance of the big six lenders being broken and new lenders such as Tesco, Virgin Money and M&S providing more creative approaches to mortgage lending.
According to new research from housing investment and equity loan provider Castle Trust, 82% of homeowners want more to be done to make it easier for new lenders to enter the mortgage market.
67% of mortgage holders believe new entrants will focus on customer needs with just 14% expecting the same from traditional lenders.
Building socieites would be particularly welcomed with 51% of people saying they trust mutuals most.
Sean Oldfield, chief executive officer, Castle Trust said: “Increased competition in the mortgage market is clearly welcome and new lenders and building societies have a major role to play.
“The mortgage market needs greater innovation and a wider selection of products than those currently on offer.
“The legacy issues faced by many of the Big Six lenders have led borrowers to believe this innovation is more likely to come from new entrants, but it is an issue that needs to be addressed by the entire mortgage market.”
