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Santander UK's gross lending and profit figures for H1 tank

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Santander’s gross mortgage lending in the first six months of the year dipped by 9 per cent year-on-year while its profits fell by a massive 20.4 per cent.

Its second quarter management statement shows gross lending fell from £8.8bn in the first half of 2012 to £8bn in the first half of 2013, while UK profits fell from £690m in H1 2012 to £549m in H1 this year.

It share of the UK mortgage market for gross lending has fallen from 12.8 per cent as at 30 June 2012 to 10.5 per cent at the end of June this year. This is down from 16.8 per cent at the end of 2011.

The lender had £159.8bn in outstanding mortgages - 12.6 per cent of the total - at the end of June compared with £170.7bn a year ago - 13.6 per cent of the total.

In the first six months of the year, its total stock of residential loans decreased by £4.3bn, which it attributes to a tightening of criteria on interest-only mortgages and higher loan-to-value mortgages.

The proportion of the lender’s loan book with arrears of 90 days or more stood at 1.87 per cent in June, up from 1.83 per cent in March, 1.74 per cent in December 2012 and 1.57 per cent in June 2012.

The proportion of properties on its books that have been repossessed has remained at 0.06 per cent since June 2012.

Santander’s average new business LTV has remained at 62 per cent since June 2012, while the average LTV of its loan book has dipped slightly from 53 per cent in June 2012 to 52 per cent in June 2013.

 

 

 

 

 

 

 

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Readers' comments (4)

  • I wonder if this has something to do with brokers voting with their feet against a lender who: a) Struck of loads of brokers because of "quality" issues b)Make their own application and criteria about as contrived as possible c)Do not however hold themselves accountable to the same "high criteria" when they screw up (which is often) Guess what there are alternatives out there as can be clearly seen by the figures!! Go choice!

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  • No surprises here. Poor service from BDM and phone BDMs'. Ridiculous underwriting, all that said if they are right for my client I still use them.

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  • Wow, that's a surprise! Surely, if you put your rates up, tighten up your underwriting and constantly look for ways to decline, your business goes up doesn't it? Add powerless BDM's who don't ring you back, and AIP and Affordability models that virtually amount to a full App and what do you seriously expect?

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  • to be fair, whilst they have a tight criteria like many lenders, at least they are at least still doing something on Interest Only unlike many. We ve had some great interest rate products and broker exclusives.

    Its all too easy to say they are rubbish etc etc....but i think on balance they are far easier to deal with than Accord,

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