Santander intends to lend up to £25bn next year, a 70 per cent increase on its 2012 lending, Money Marketing understands.
Over the past two years the Spanish bank has been conducting a huge deleveraging exercise which saw its balance sheet shrink from roughly £173bn in 2011 to around £150bn now.
This led to its mortgage lending tailing off dramatically and saw it slip from the second biggest mortgage lender in the market in 2011 to fifth last year.
In 2011 it advanced £23.7bn to borrowers, giving it a market share of 16.8 per cent. However, in 2012 it advanced £14.6bn to borrowers, a fall of 38 per cent, which saw it share of the market shrink to 10.2 per cent.
In the first half of 2013 Santander advanced £8bn to borrowers, down 9 per cent on the £8.8bn advanced in the first half of 2012.
But Money Marketing understands the bank wants to lend between £23bn and £25bn in 2014, with the proportion of business going through brokers remaining roughly 75 per cent.
Santander would not give its exact lending plans for 2014 but promised a “significant” uplift in lending.
In an interview with Money Marketing’s sister title Mortgage Strategy, director of retail products and services Phil Cliff says: “If you were to look at the pound level of lending we did in 2012, we’d like a significant uplift on that in 2014.”
Lentune Mortgage Consultancy managing director Stuart Gregory says: “It is positive news because if Santander is planning to pick up lending by this much it is a good indication of where it thinks the market is heading. Santander is normally the first lender to move and the others tend to follow.”