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Santander pushed to fifth biggest lender after market share slump

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Santander has clung onto its place in the biggest five mortgage lenders after seeing its market share slip from 16.8 per cent in 2011 to 10.2 per cent in 2012.

Figures published today by the Council of Mortgage Lenders show Santander’s slipped from second in the pecking order in 2011 to fifth at the end of 2012, after seeing its gross lending fall from £23.7bn to £14.6bn.

Lloyds Banking Group retained the top spot in 2012, although its market share and gross lending figures both dipped. Gross lending fell from £28bn in 2011 to £26.2bn in 2012, while its market share dipped slightly from 19.8 per cent to 18.3 per cent.

Nationwide surged from fourth to second in the top 20 league table after seeing gross lending increase from £17.2bn to £21.2bn in 2012, while its market share increased from 12.1 per cent to 14.8 per cent.

Barclays held onto third place, although gross lending fell from £20.1bn in 2011 to £18.2bn in 2012 and its market share fell from 14.2 per cent to 12.7 per cent.

HSBC entered the top five after finishing 2011 in sixth place. It increased gross lending from £13.2bn to £16.4bn in 2012 and, as a result, its market share increased from 9.3 per cent to 11.5 per cent.

Royal Bank of Scotland slipped from fifth to sixth after gross lending fell from £14.6bn to £13.9bn, and its market share fell from 10.3 per cent to 9.7 per cent. However, it was only £700m off Santander, which has plummeted from second to fifth within a year.

The mutual sector also grew as a whole. Even after removing the substantial growth seen by the UK’s largest building society, Nationwide, other mutuals within the top 20 grew in share by a combined 2 per cent. Overall, mutuals in the top 20 accounted for 24 per cent of total gross lending, up from 19 per cent in 2011.

Tesco Personal Finance entered the top 20 for the first time. At the end of 2012 it had a 0.2 per cent market share after advancing £0.3bn.

Overall, the top 20 lenders advanced £130bn in 2012, out of a total of £144bn, compared to £129bn in 2011.

Since the onset of the financial crisis the top six lenders have dominated gross lending. This continued in 2012, although the top six’s share fell from 81 per cent in 2011 to 77 per cent in 2012, which is lower than any point since the height of market activity in 2007.

The top six reduced their lending in absolute terms as well, falling from £117bn in 2011 to £111bn last year.

Largest mortgage lenders by gross lending:

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Six largest lenders’ share of gross lending:

 Source: CML

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