It is important for more lenders to enter the mortgage market, as this will help consumers find competitive deals, it has been said.
Ben Wilkie, editor at What Mortgage, believes bigger banks have made the most of troubled times over the last couple of years, as they took advantage of market conditions.
He continued: "Santander has taken a lot [of business] and HSBC has also had massive increases this year.
"While no-one is immune from the downturn, the big banks that were relatively stable during this time could afford to offer lower rates."
Customers need to go in search of the best deals, Mr Wilkie advised, with the biggest lenders likely to be offering the most favourable rates at the moment.
"There is still choice out there and the fact that perhaps there will be three or four new banks launching this year is going to help," he stated.
Santander is able to offer better deals to the public because it does not need to go to the markets to obtain its funding, the expert revealed.
Having said this, Mr Wilkie does not believe that the bank will have much luck increasing its market share.
"More lenders are offering more products at the moment. More companies will become more competitive as the year goes on," he suggested.
In its UK financial report for last year, Santander reported on February 4th that its net lending in 2009 stood at £7.6 billion, which it estimates to be a net market share of 69.1 per cent.
The company's share of the total residential mortgage market in the fourth quarter of 2009 stood at 13.5 per cent.
Meanwhile, gross lending in the fourth quarter of 2009 was up 44 per cent on the same quarter in 2008.