launches UK mortgage auction market launches UK mortgage auction market has launched the UK's first online auction for mortgages with an initial panel of 14 lenders bidding to offer the best loan deals to consumers.

The service, whereby a mortgage application is filled in on-line, with lenders then competing to offer the borrower the best mortgage deal, is based on a successful US business model. It is initially open to borrowers seeking mortgages of £150,000 or more, with an initial panel of 14 lenders on board, including Bristol & West and The Woolwich.

A full range of mortgage products will be offered onsite, including discounted, variable, fixed and capped rates, and there will be provision for more specialised cases such as investment property, adverse credit and the self-employed.

Moneysupermarket chief executive Simon Nixon says the new channel has already attracted £50 million in advance business. "If this continues, we will be one of the biggest lenders in the UK by next year," he says.

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