View more on these topics

Santander plans 70% increase in mortgage lending next year

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.” 

Recommended

Pound-Sterling-GBP-Money-Currency-Andrew-Michaels-700x450.jpg

Partnership secures £22m enhanced ‘buy in’ deal

Partnership has agreed to insure £22m in defined benefit pension promises for an unnamed company through an enhanced “buy in” deal. The deal, which was advised on by Hymans Robertson and law firm Squires Sanders, will cover around 20 of the scheme’s highest liability pensioner members. The agreement will see the pension fund transfer a […]

Financial services regulation and ethics

FCA investigates fund charges and incentives Rachel Gordon and Jonathan Yarker The Financial Conduct Authority (FCA) has revealed more from its thematic review into fund charges, and reveals that its probe into the way that front-line sales staff are incentivised will be broadened from banks to include all regulated firms. The FCA’s March business plan […]

Godfrey-Daniel-2012-700x450.jpg
2

Labour and IMA in war of words over charges

Shadow pensions minister Gregg McClymont and the Investment Management Association have clashed over the appropriate level of disclosure on investment charges. The IMA published guidance on disclosing fund charges in September 2012, following industry consultation. The guidance, known as the IMA’s Statement of Recommended Practice asked fund managers to provide three-year averages for transaction costs, […]

Time for a new approach to asset allocation

Trevor Greetham, RLAM’s head of multi asset, introduces the recentlylaunched RL GMAPs. Asset allocation has become an increasingly difficult challenge for investors and advisers in the years since the financial crisis. Sometimes violent price swings in stock and commodity markets coupled with the collapse in the rate of interest on bonds have made it harder […]

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