Lloyds plans to cut share of mortgage market to 25%

Lloyds Banking Group is planning to cut its share of the UK mortgage market from 28% to 25%, according to reports.

In a call with analysts yesterday discussing its Q1 2012 results Antonio Horta-Osario, chief executive of Lloyds group, pledged to reduce his bank’s share of UK mortgage lending.

He is also aiming to increase its share of retail deposits from 23% to 25% to align with its share of the mortgage market.

Lloyds says it has maintained a strong presence in the house purchase market and there has been a reduction in the amount of remortgage business.

Its approval rates have remained consistent compared to last year and around eight in 10 applications are approved.

A spokeswoman for Lloyds says: “The retail  deposit market continues to be highly competitive, and the costs of deposits remain high.

“However, given that retail deposits remain cheaper than wholesale funding, we see it as sensible to continue to grow our deposits further.”

Lloyds reduced its total wholesale funding to £231.3bn, down 8% compared from the end of 2011 and 24%, or £71.8bn since the end Q1 2011.

Wholesale funding with less than one year maturity reduced to £91.4bn, down by 41% since March 2011 standing at £154.6bn as of 31 March 2011.