UK mortgage lenders still face challenges because of economic uncertainty and tougher capital requirements that will continue to weigh on more vulnerable companies, while the stronger players will be able to take advantage by making further acquisitions, Moody’s Investor Service said Wednesday. Higher funding costs driven by the gradual withdrawal of government aid and intense competition for deposits is a key pressure which will make it difficult for many lenders to make profit at a time when growth in the lending market is flat, and when they need more capital to meet regulatory requirements, said Moody’s.
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