HBOS continues to dominate the mortgage lending league with takeover target Abbey still in second place, according to the CML's annual list of the biggest mortgage lenders.
The CML estimates that HBOS's market share of lending is 26 per cent while Abbey is second with 10.7 per cent. An Abbey takeover by HBOS would result in HBOS boosting its market share to over 36 per cent.
HBOS had £171.1bn total mortgage balances outstanding at the end of 2003, 22.5 per cent of the market . Abbey has 11.5 per cent, totalling £88.2bn.
Nationwide is in third place on lending with 9 per cent market share worth £24.4bn, up from fifth place in 2002. Lloyds stays in fourth place with 8.9 per cent market share at £24.2bn through Cheltenham & Gloucester. Barclays falls from third to fifth place with 6.8 per cent of the market worth £18.3bn.
The biggest mover, although still a relatively small player, is Co-operative Bank, moving up six places from 29th to 23rd in the gross mortgage lending table. The bank has 0.7 per cent of the market with £1.7bn.
HBOS head of media relations Mark Hemmingway says: “The results demonstrate the effectiveness of our strategy, investment in technology, processing and specifically our relationship with intermediaries.”
HBOS would not comment on a possible bid for Abbey.
Chadney Bulgin IFA Tom Chadney says: “It is a shame if we lose some of the biggest competition in the market with an HBOS takeover of Abbey.”