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Lloyds Banking Group tops lending stats for 2010

The top six lenders accounted for an estimated 81.5 per cent of the total volume of lending undertaken last year, show the latest figures from the Council of Mortgage Lenders.

This was slightly down from the 83 per cent market share that these lenders collectively represented in 2009. Lloyds Banking Group retained its position as the largest mortgage lender in 2010.

It claimed the top spot for a second year running with £30bn of gross mortgage lending in 2010, a 22.1 per cent market share, down on the £34.7bn it did in 2009, with a 24.2 per cent market share.

Santander claimed second place, with a 17.8 per cent market share, down on 18.4 per cent in 2009. Barclays is the third largest lender with a 12.4 per cent market share, followed by The Royal Bank of Scotland, Nationwide Building Society and HSBC.

ING moved from 23rd place in 2009 to become the thirteenth largest lender in 2010.

In terms of value, the largest six lenders collectively accounted for just under £111bn of lending, down from £119bn in 2009.

Medium sized lenders also increased both their lending levels and their market share, and there were five first-time entrants to the top 30 by gross lending in 2010.

Those lenders ranked from 7-15 in the table together undertook around £19.6bn of lending last year, nearly double their combined lending of £10bn in 2009.

Saffron and Cambridge building societies were new entrants into the table, along with UBS, Aldermore Mortgages and Market Harborough Building Society.

The CML publishes two lists of lenders by relative size. The first is based on the level of lending that each lender undertook during the year. The second is based on the overall value of mortgages held with each lender, irrespective of when they were taken out.

The same big six, also appear at the top of the balances outstanding table as the gross lending table. Together, these lenders account for around £899bn of outstanding mortgages – nearly 73 per cent of the total mortgage stock as at the end of 2010.

Although this was an increase on their £884bn combined balances at the end of 2009, and their 71.5 per cent share at that time, their combined back book still represents a lower share of market than their 81.5 per cent share of gross lending for 2010, reflecting the ongoing concentration effects on the supply of new lending that were one of the effects of the financial crisis.

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