Top six shake up? And we’re not talking about football!
People buying a property are increasingly getting a mortgage from lenders outside the notorious ‘top six’, latest figures would suggest.
According to the Council of Mortgage Lenders (CML), the collective market share of Lloyds Banking Group, Nationwide, Barclays, HSBC, Santander and Royal Bank of Scotland has dropped from 81% to 77% in 2013 and is now at its lowest point since the height of the market in 2007.
Despite this collective decline both Nationwide and HSBC in fact grew their lending by 24%, suggesting the remaining four significantly reduced theirs. Santander saw the largest reduction of mortgage lending (38%) and, as a result, dropped from its previously consistent position of number two to fifth. Nationwide and HSBC rose to second and fourth respectively.
Meanwhile, outside the top six, Coventry Building Society clambered the ranks to the lofty heights of seventh following a 26% growth while Tesco made impressive inroads in its continued bid for world domination; the supermarket giant’s financial arm – Tesco Personal Finance – lending £300m, securing them a joint 20th placed finish.
Lynne McCaffrey is the Head of Property at Goldsmith Williams Solicitors:
“It is great to see new lenders entering the market and stir up the status quo a little. Competition amongst mortgage lenders can only help contribute to the market’s recovery.
“However the increased number of lenders could make finding the right deal a little more confusing. That is where a mortgage broker can prove invaluable. Offering a whole of market option, a mortgage intermediary can help buyers find the best deal for them and their ongoing financial situation, particularly in light of recent news surrounding the real cost of headline-grabbing rates.”
Content correct at time of publication