View more on these topics

Santander increases lending by 27% to £18bn in 2013

Santander increased gross lending 27 per cent last year, from £14.4bn in 2012 to £18.4bn in 2013, despite reducing the size of its mortage portfolio by £8.5bn.

Santander’s full-year results, published last week, confirm the lender reduced its mortgage book by 5 per cent in 2013, from £156.6bn to £148.1bn.

Figures released by the Council of Mortgage Lenders in August last year showed Santander had fallen from being the second largest mortgage lender in the UK to fifth between 2011 and the end of 2012, with its market share dropping from 16.8 per cent to 10.2 per cent.

Santander says the reduction in its mortgage book was the result of cutting exposure to what it described as ‘’selected higher risk mortgage segments’’.

The balance of interest-only mortgages dropped 12 per cent during the year, from £61.2bn in 2012 to £54.8bn in 2013.

First-time buyers accounted for £3.4bn of all mortgages lent by the bank last year.

Overall profit before tax from continuing operations was £921m, up five per cent from £877m in 2012.

Santander UK chief executive Ana Botin says: “This year we will continue with our significant investment in strategic initiatives to expand further our commercial businesses, to improve our retail banking offering and enhance the experience of our customers interacting with us across all channels.”

Your Mortgage Decisions director Dominik Lipnicki says: ”The picture is a lot rosier in the mortgage market this year and I would expect to see more results showing growth in mortgage lending. There are a lot more products available and lending is cheaper than it has been for a long time.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com