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Lloyds keeps top spot in 2016 but smaller lenders forge ahead: CML

Money

Lloyds Banking Group was the biggest 2016 lender by gross volume, but smaller lenders are growing market share rapidly, according to new figures from the Council of Mortgage Lenders.

The CML says the top ten lenders controlled 84 per cent of gross lending in 2016.

Lloyds kept the top spot, but its market share declined from 17.3 per cent in 2015 to 15.6 per cent in 2016.

Nationwide kept its place as the second-largest lender, and increased its market share to 14.4 per cent.

Royal Bank of Scotland and Santander switched third and fourth places over the course of 2016.

RBS now controls 12.9 per cent of the market to Santander’s 10.4 per cent.

Clydesdale, which was the tenth-largest lender in 2015, is now 11th. TSB has become the tenth-biggest lender with 2.7 per cent of the market.

Outside the top ten, the CML found that medium-sized lenders saw a gentler rate of growth in 2016 while smaller lenders drastically increased their market share.

In 2015, medium-sized lenders (between 11-20 by total gross lending) saw particularly strong growth, with a 56 per cent increase in annual lending volumes.

They accounted for 12 per cent of total lending, compared to 8 per cent in the preceding year.

In 2016, however, those ranked 21-30 by volume of lending grew by 60 per cent in aggregate.

Precise Mortgages saw lending growth of 54 per cent, Metro Bank of 67 per cent, Fleet Mortgages 150 per cent and Legal & General Home Finance of 200 per cent.

The CML figures show overall 2016 gross lending was £245bn, up 11 per cent from 2015.

The data covers 97 per cent of all UK mortgage lending.

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