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Northern Rock drops off list of big five lenders

Northern Rock has dropped off the list of five biggest lenders and its market share has plummeted, according to Council of Mortgage Lenders data.

In 2007, Northern Rock was the fourth largest lender with an estimated market share of 8.1 per cent and gross mortgage lending of £29.5bn.

But it has dropped to number eleven on the list with gross mortgage lending in 2008 reaching only £2.9bn and with an estimated market share of 1.1 per cent.

The list, published in CML’s latest news and views, shows a reshuffle among the biggest lenders although Lloyds Banking group, Santander and Nationwide Building Society respectively hold the same top three positions as in 2007.

Barclays has moved up to fourth place from fifth place in 2007 and the Royal Bank of Scotland made it into the top five in 2008.

CML says: “With so many lenders either merging or ceasing lending, this year’s largest lenders’ table has changed more than in other years.

“For gross lending in the year, there are significant changes throughout the table. Some larger lenders, most particularly in the specialist sector, have dropped a number of places down the list or been replaced by names not seen in the list before.

“While some specialist lenders remain in the list for last year, we would expect shrinkage of this sector to continue while current market conditions persist. Even if conditions in wholesale markets improve this year, the backwards looking nature of our largest lenders’ table means that we would expect next year’s data to show that the specialist lending sector has shrunk further.

“Meanwhile, the lending commitments from the nationalised and part-nationalised banks suggest yet more growth in market share for this sector. And, of course, we may not have seen the end of the current wave of consolidation. So, next year’s table is likely to look different again, with more new names and an even larger market share in the hands of the largest firms.”

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