Mortgage borrowers prefer banks to supermarkets
With the prospect of new entrants into the UK mortgage market following the break up of RBS and Lloyds Banking Group, moneysupermarket.com has conducted a study that indicates Britons prefer to deal with established lenders when it comes to buying a property.
Chancellor of the Exchequer Alistair Darling has already made it clear that the owners of the High Street chains to emerge from the restructure of RBS and Lloyds must be relative newcomers to UK financial services sector and Tesco is tipped as a potential bidder.
However, according to the website’s research, large numbers of Britons are wary of major retail brands moving fully into banking.
Forty-one per cent of those interviewed thought that large supermarkets were growing too big and only 4% said they would trust a supermarket brand more than a bank to look after their finances.
A mere 5% of respondents said they would take out a mortgage with a supermarket brand and only 10% believed a supermarket would provide better service than a bank.
Thirty per cent of people questioned felt supermarket “have already gone too far and should stop expanding”.
Moneysupermarket’s head of banking, Kevin Mountford, comments: “Many people are naturally cynical about the expansion of large brands into new product areas, feeling that certain companies are getting a bit too big for their boots in taking on so many different industries all at once.”
He adds: “The trend of supermarket brands entering into the banking sector is not likely to slow down soon, however it is quite clear they haven’t yet won over the British public, and until they do, they will be consigned to a relatively small market share.”
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