HBOS has admitted its experimental retention strategy introduced last year has failed to deliver leading to a large dip in its lending share to less than 10 per cent.
In a trading statement released this morning, HBOS says it has now taken corrective action which it believes will lead to its market share returning to normal levels.
It says it is confident in returning to its usual 15 to 20 per cent range in the second half of this year, compared to a first half net lending share likely to be less than 10 per cent.
The statement says: “In mortgages, the retention strategy introduced in the latter part of 2006, designed to trade an element of gross share for improved principal repaid, has not delivered the anticipated benefits. After a slower first quarter for net lending, we are now seeing an improved performance, having taken corrective action in the second quarter.”