Landlords could find financing for their new property purchases via overseas banks, claims a real estate investment company.

While UK banks have suffered from the credit crunch, the Bank of China is showing interest in entering the UK mortgage market and could offer favourable rates to landlords with a strong credit history.

Director of trading for Currencies Direct Mark O' Sullivan believes that overseas banks could offer a real alternative to the current four leading UK mortgage providers and boost competition in the sector.

"It may be that this is kind of a watershed, that maybe the mortgage market in the UK will change forever. Maybe it will be foreign banks that come into the market that offer the best deals, it could actually be a complete change around,"he explained to Assetz.

Mr O'Sullivan also believes that within three to four years around 25 per cent of mortgages issued in the UK could be via Chinese banks.

The Council of Mortgage Lenders believes that the seasonal increase in mortgage lending could continue for the rest of the summer period.
Written by John WeeksADNFCR-2002-ID-19286155-ADNFCR

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