The Big Six lenders see a fourth consecutive decline in market share
The UK’s six biggest lenders have seen a fall in their share of the gross mortgage lending market, for the fourth year running.
A Council of Mortgage Lender’s (CML) report revealed 2013 saw the top six securing 72% of the market — a 4% drop from the previous year.
Prior to the financial crisis, 2006 saw the group upholding a share of just 61%. Once the crash hit, smaller lenders were obliterated and others found themselves being affected by market consolidation.
This allowed the big six to reach a peak in 2009, with a share of 86% of gross lending, followed by a gradual decrease to 82% then 81% during the next two years.
Lloyds remain ahead of the game with a new lending figure of £35.5 billion in 2013 and a staggering 20.2% of the total market share. This is a significant increase from 2012, where they saw an 18% market share with £26.2 billion. Figures of the TSB brand are now accounted separately, following the divide of business.
Second place was taken by Nationwide for another year, holding 15.3% of the market with £26.9 billion in new lending. The 2012 share was at a lower percentage, at 14.6% with £21.2 billion in mortgage lending.
Santander saw a vast improvement in the market during 2013 — rising two places, with £18.3 billion in new lending transactions and securing a 10.4% share. The previous year, Santander had a slightly lower percentage share at 10%, but with a significantly lower lending sum of £14.6 billion.
At fourth place was Barclays who experienced a significant decline in new lending. In 2013 they brought in £16.9 billion (9.6% market share) which followed a successful year in 2012, with £18.2 billion and a 12.5% share.
Down one place to fifth position was HSBC, with 8.2% of the market and earning £14.5 billion in lending. 2012 saw HSBC with a greater portion of the market at 11.3% and £16.4 billion worth of mortgages.
The Royal Bank of Scotland stays in sixth place, with £14.3 billion and an 8.1% market share in 2013. Though in 2012 the bank held 1.5% more in the lending market, their new lending income was actually lower at £13.9 billion.
Out of the top six, lenders succeeding (in order of market share) were Yorkshire Building Society, Coventry Building Society, Virgin Money and Clydesdale. Skipton, owner of the Connells Group was at eleventh place.
Beyond the top 20 the smaller companies have seen a positive outcome. Though in 2013 they held just an 8% market share of the UK total gross mortgage lending, this was a considerable boost from 2011 when they held less than 1% of the market.
This year sees some of the largest banks creating stronger partnerships with the property industry — including arrangements between the CLC and HSBC. Do you see this having any effect on lending figures?