Top six lenders did over 81% of lending in 2010
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The top six lenders accounted for an estimated 81.5% of the total volume of lending undertaken last year, show the latest figures from the Council of Mortgage Lenders.
This was slightly down from the 83% market share that these lenders collectively represented in 2009.
Lloyds Banking Group retained its position as the largest mortgage lender in 2010.
It claimed the top spot for a second year running with £30bn of gross mortgage lending in 2010, a 22.1% market share, down on the £34.7bn it did in 2009, with a 24.2% market share.
Santander claimed second place, with a 17.8% market share, down on 18.4% in 2009.
Barclays is the third largest lender with a 12.4% market share, followed by The Royal Bank of Scotland, Nationwide Building Society and HSBC.
ING moved from 23rd place in 2009 to become the thirteenth largest lender in 2010.
In terms of value, the largest six lenders collectively accounted for just under £111bn of lending, down from £119bn in 2009.
Medium sized lenders also increased both their lending levels and their market share, and there were five first-time entrants to the top 30 by gross lending in 2010.
Those lenders ranked from 7-15 in the table together undertook around £19.6bn of lending last year, nearly double their combined lending of £10bn in 2009.
Saffron and Cambridge building societies were new entrants into the table, along with UBS, Aldermore Mortgages and Market Harborough Building Society.
The CML publishes two lists of lenders by relative size. The first is based on the level of lending that each lender undertook during the year. The second is based on the overall value of mortgages held with each lender, irrespective of when they were taken out.
The same big six, also appear at the top of the balances outstanding table as the gross lending table. Together, these lenders account for around £899bn of outstanding mortgages – nearly 73% of the total mortgage stock as at the end of 2010.
Although this was an increase on their £884bn combined balances at the end of 2009, and their 71.5% share at that time, their combined back book still represents a lower share of market than their 81.5% share of gross lending for 2010, reflecting the ongoing concentration effects on the supply of new lending that were one of the effects of the financial crisis.
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Readers' comments (3)
Anonymous | 23 Aug 2011 2:46 pm
Looks like a lot of clients got a poor deal last year then. I did not place a mortgage with the Lloyds group as they were so uncompetitive on rates and service.
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Bobby | 23 Aug 2011 3:29 pm
Is this not known as if not a Monopoly certainly a Cartel. Very unhealthy for the general public but the FSA seem to want to stop and prevent new entrants into the market as this Cartel suits their needs very well, which after all is all they are interested in.
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Worn Out | 23 Aug 2011 4:46 pm
If those figures are accurate - why do we all use a Mortgage sourcing system?
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