Barclays UK lends £9.9bn to homeowners in first half

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Barclays UK lent £9.9bn to homeowners in the first half of 2016, up from £9.5bn in the preceding six months.

The lender’s total home loan book fell slightly to £127.4bn in the first half from £127.5bn in the previous six months.

Around 93 per cent of the lender’s book was lent below 75 per cent LTV in H1 2016.

Barclay’s UK mortgage book had an average LTV of 47 per cent in the period, a small drop from 51 per cent in H1 2015.

The average LTV of the lender’s new business is 63 per cent.

Barclays UK took a £400m hit in its H1 2016 results to pay for payment protection insurance mis-selling, taking its estimated final bill to £7.8bn.

Barclays UK’s underlying profit before tax fell 4 per cent to £1.3bn in the first half, driven by an income drop and an increase in credit impairment charges.

But including notable items Barclays UK made a profit before tax of £1bn for the first half, up 52 per cent on £712m in the same period the year before.

The H1 2016 rise in profit before tax includes a £151m windfall from Visa US buying out Barclays UK’s share in Visa Europe, first announced in November 2015.

The rise is also due to the group setting aside less for PPI redress in H1 2016.

Barclays UK set aside £400m for customer redress in the first half, down from £967m in the same period last year.

Personal banking income rose 1 per cent to £1.9bn. The rise was caused by improving deposit margins, but was tempered by decreasing profits on Barclays UK’s mortgage lending.

The banking group has 1,331 branches at the end of June, 117 fewer than at the end of H1 2015.