Professor Philip Lane:

I am keen to make two points. The first is that I have no wish in particular to discuss current applications. I will make a general point. We may see entry which amounts to slicing off particular parts of the market. We may see considerable competition for low-risk safe debtors. The most likely type of entrant is a body that wants to lend to low-risk customers. The greater problem is how to satisfy credit demand for high-risk lower-income households. It is important to think of the mortgage market as having many sub-markets, some of which may be subject to more competition than others. I will pass over to Mr. Sibley to comment on the current situation.