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HBOS sees mortgage share fall below 20%

HBOS saw its mortgage market share slip below 20 per cent in the first six months of this year after it tightened lending criteria to adjust to higher interest rates.

The group says that, as intended, its policy of tightening lending criteria as interest rates rise is resulting in slower asset growth. In mortgages, this is expected to result in a share of net lending below 20 per cent for the first half and the full year.

HBOS had 25 per cent of the market last year compared with 31 per cent in 2002.

It says its economists are predicting a slowdown from the current 20 per cent annual rate of house price increases but it is not expecting a crash.

A company statement says: “Overall, HBOS&#39s results are expected to show good progress towards the group&#39s target return on earnings although our decision to slow asset growth means we may not quite achieve our 20 per cent target.”


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