HBOS has admitted it got its pricing wrong earlier this year, resulting in its market share plummeting from close to 20% to 8%.
Last week, the lending giant iss-ued a pre-close trading statement ahead of its half-year results, in which it revealed that its retention strategy had not delivered the anticipated results. Its mortgage market share has slipped from about 15% to 20% to below 10% as a consequence.
A HBOS statement on the London Stock Exchange says: “The start to the year is likely to result in a first-half net lending share of less than 10%.
“We’re confident we will return to our normal 15% to 20% range in the second half of the year.”
A spokesman for the lender says the results reflect the high number of three-year fixed rate deals that came to an end in January and February this year.
He says: “At the time some of our competitors were more nimble with their rates than us and we lost a lot of business. Our market share is at about 8%, but we’ve addressed this and have become more flexible.”
Dev Malle, director of mortgage distribution at Personal Touch Fin-ancial Services, says: “HBOS brands have come back with fantastic rates that will fly off the shelves. Underestimate it at your peril.”