New entrant to the UK mortgage market for 2012.

India's biggest mortgage lender, State Bank of India has confirmed new plans to enter the UK mortgage market later this year. The bank has advised that it will launch a range of residential mortgages which will be made available to UK borrowers from August 2012.

In September 2011 the mortgage lender, who is just under 60 per cent state owned, launched a new mortgage to let deal. The new product, a tracker mortgage was offered at 3.99 per cent through intermediaries.

The lender confirms their new range of products will be launched later in the year with a plan to make them available through brokers. State Bank of India were established in the UK 90 years ago to serve the Indian community, last year the bank increased it's number of branches to10.

The lender currently offers investment and savings products to UK customers and so it may already be well placed to offer competitive rates if it can utilise retail customer deposits to fund its mortgage lending. However, market experts have suggested that the lender may most likely adopt a conservative approach to lending.

The head of State Bank of India UK Rajnish Kumar, advised that the UK credit crisis which led to lending regulations being tightened has opened up increased opportunities for smaller lenders to enter the UK mortgage market.

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