Santander lent £11.5bn to mortgage borrowers in the first nine months of 2012, down 32 per cent on the £16.8bn lent in the first nine months of 2011.
According to its third quarter management statement, the lender’s share of the UK mortgage market fell from 16.3 per cent to 10.8 per cent in the year to 30 September 2012.
It says around 22 per cent of its 2012 lending has gone to first-time buyers. Roughly 75 per cent of the lender’s mortgage lending comes from intermediaries.
Its mortgage book shrank from £172.6bn at the end of September 2011 to £167.4bn at the end of September this year.
The lender made a pre-tax profit of £1bn in the first nine months of the year, roughly the same as it did in the first nine months of last year.
Santander has a core tier 1 capital ratio of 12.8 per cent and it says it has accessed £1bn so far from the Government’s Funding for Lending scheme.
Earlier this month, Money Marketing reported Santander’s intermediary arm, Abbey for Intermediaries, is looking to double its mortgage lending next year. Also this month, Santander walked away from a deal to buy 316 Royal Bank of Scotland Group branches.
Capital Fortune managing director Rob Killeen says: “It is disappointing when a lender as important as Santander pulls back from the market to such an extent. Hopefully it will make the decision to come back in a big way as it will be a real help to the market.”