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Santander’s gross mortgage lending jumps by a third

Santander UK increased its gross lending by 34% in Q1 2012, its results reveal today.

The lender carried out £5.6bn of gross lending in the first three months of 2012, compared with £4.2bn in the same period last year.

Its net lending in the first three months of the year was £200m, compared to – £600m in the first three months of 2011.

In its results the lender says it has tightened its risk appetite in the retail mortgage market and is originating less business for higher LTV deals and interest-only mortgages.

As a result it expects its mortgage stock to contract over the year.

Its results say: “In March 2012, Santander UK announced it was tightening its lending criteria on interest-only mortgages as part of a range of actions to further improve the credit quality and profitability of the mortgage book.

“Notwithstanding this, mortgage gross lending in the first quarter of 2011 was £5.6bn, equivalent to a market share of 17.6%.”

The results add: “Mortgages and savings continued to be a core component of the retail offering, through both direct and intermediary channels.”

Overall Santander Group made a profit after tax of €1.6bn, down 24% mainly due to increased provisions for non performing loans. 

Pre-provision profits were €6.2bn and up 9%.

Its UK profit before tax was £347m, down around 40% from Q1 2011 when it was £590m. 


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  • bobby 28th April 2012 at 11:13 am

    I think the figures for all lenders will fall off a cliff in April with the stamp duty holiday ending and the difficulties to re mortgage. Watch this space.

  • Shock horror 26th April 2012 at 6:20 pm

    Terrible post from John N Crisp!

    Terrible content and he asked for the net figure when it clearly states: “Its net lending in the first three months of the year was £200m, compared to – £600m in the first three months of 2011.”

    God help your clients, and Santander for accepting your business! They are probably sick of it anyway

  • P Williams 26th April 2012 at 11:46 am

    The only reason lending is up in the first quarter is because of the wash through from Q4 2011. Wait for the figures for Q2 they will def be down!

  • Fran brogan 26th April 2012 at 10:56 am

    Gross business is completions ( net is the difference between this new business and the redemptions). The fact you struggle with this basic point may point to why you have issues with your packaging of new business with Santander?

  • John N Crisp 26th April 2012 at 10:36 am

    Gross figures always look good. What’s the net figure. I for one can list a number of cases where funds have been pulled from soilicitor, or failed credit score after offer of loan comes out and more. Come on Santander – spit out the truth