View more on these topics

CML figures fuel fears of HBOS market dominance

The Council of Mortgage Lenders&#39 annual list of top lenders names HBOS as the biggest lender for the second year running, both by size and by total mortgage assets in 2003.

HBOS&#39 estimated market share of gross mortgage lending in the year is 26.0%, while Abbey&#39s is 10.7%.

If HBOS was to be successful in a bid for Abbey it could boost its total market share to 30.7%. Deutsche Bank says HBOS is expected to emerge the victor from the looming takeover battle.

In a comprehensive research note entitled HBOS, best dressed for the Abbey ball, Deutsche analyst Nick Lord says that HBOS is the only UK bank likely to counter the agreed offer tabled by Spain&#39s Santander Central Hispano.

Lord says: “We believe it is increasingly likely that HBOS will counterbid for Abbey and that it is the only UK bank with a serious chance of success.

“Although it is possible that others might enter the fray, the regulatory hurdles would be higher so we believe that HBOS will be the only serious counterbidder.”

HBOS was thought to be taking advice on how monopoly watchdogs would respond to a combination of the two British banks following Lloyds TSB&#39s attempt to buy Abbey.

CML figures show HBOS is again top lender by far, with £171.7bn of mortgage balances outstanding at end of year and an estimated 22.5% market share. HBOS&#39 gross mortgage lending in the year has been £70.3bn and it is estimated to have a 26% market share.

Abbey National comes second on the CML table, with total mortgage balances outstanding at end of year at £88.2bn and gross mortgage lending of £29.1bn.

The top five lenders were Abbey, Nationwide, Lloyds TSB, Barclays, and The Royal Bank of Scotland.

Barclays has slipped two places in the table since last year, while Nationwide has moved up two places to become the country&#39s third biggest lender.

Recommended

Norwich & Peterborough slashes fixed rates

The rates for two-year fixed rate mortgage schemes are now 2.99% and 3.39%, the five-year fixed rates are now 5.58%, 5.98%, 5.74% and 6.34% and the 10-year rates are now available at 5.68%, 5.93% and 5.78%. Gary Lacey, N&P&#39s group product manager, says: “These reductions mean that N&P is offering some of the most attractive […]

Advantage Home Loans enhances procuration fees

The announcement enhances all deals placed on its Branded S500 range – funded by Southern Pacific Mortgages – by a further £400 provided that the business is submitted on their new generic application form and that it completes by December 31 2004.

All change for independence

For firms to describe themselves as independent after Mortgage Day, they must offer consumers a purely fees-based payment option. David Whitely, press officer for the Financial Services Authority, says: “If this is how the consumer chooses to pay, any commission received on a sale will have to be paid to the consumer.” London broker Alexander […]

Bristol and West launches products suite

The nine products include discounted and fixed rates, as well as three self-certification mortgages. Offering value to borrowers concerned about long term base rate movements are the five year fixed rate at 5.59% and the sevenyear at 5.69%. In the shorter term, the two year discount offers a useful set of benefits for remortmagers, including […]

Health services

Challenges and opportunities

By Sarah Scott, marketing consultant On 22 February this year the charity Diabetes UK launched a fundraising initiative, #Swim22. They challenged individuals to swim 22 miles over the course of 89 days – a distance that equates to the width of the English Channel. Because of the time period the challenge is spread over, it […]