March 12 2014 Latest news:
Adam Aiken, Editor
Wednesday, August 24, 2011
Six lenders dominated the 2010 mortgage scene in terms of gross lending, with more than 80pc of all home-loan advances concentrated in the hands of these few providers.
According to a league table published by industry group the Council of Mortgage Lenders (CML), Lloyds Banking Group – which includes the Halifax and Cheltenham & Gloucester brands as well as Lloyds TSB – was responsible for an estimated £30bn in new lending last year, or 22pc of total mortgage advances.
Santander lent an estimated £24.2bn during 2010, while Barclays, Royal Bank of Scotland, Nationwide Building Society and HSBC also made significant loan advances.
Those six lenders collectively advanced £111bn during the year, down from £119bn in 2009.
However, the CML said mid-sized lenders increased both their lending levels and their market share, and in terms of gross lending there were five newcomers to the top 30.
The mid-sized lenders, which ranked from numbers seven to 15 in the table, included names such as ING Direct, Yorkshire Building Society, Co-operative Bank and Northern Rock.
These nine lenders advanced an estimated £19.6bn last year, up from £10bn in 2009. It meant their collective share of new lending rose from 7pc to 14pc. The CML said this “pointed to the capacity and appetite of the mid-sized lenders to continue to bring diversity to a market that has become highly concentrated among a small number of large providers in the wake of the financial crisis”.
The other 15 players in the CML’s top 30 accounted for 2.5pc of gross lending, with the remaining 2pc advanced by lenders outside the top 30.
Saffron Building Society, Cambridge Building Society, Market Harborough Building Society, UBS and Aldermore Mortgages were the five lenders who cracked the top 30 for the first time.