Competition in the mortgage market picks up

The Council of Mortgage Lenders (CML) latest figures suggest that competition in the mortgage market is growing, as activity in the housing sector picks up. At the height of the financial crisis in 2009, more than 90% of gross mortgage lending was carried out by Lloyds, the Nationwide, Barclays, HSBC, Santander and RBS. However, in 2012, the big six lenders reduced their share to 77%. The reduction in market share has been caused by other smaller lenders taking advantage of the big six drawing back on mortgage offers during the financial crisis, which has allowed some of the smaller lenders to become more aggressive within the market place. The CML said “Competition in the market is growing, bringing with it benefits to consumers shopping around for the mortgage deal to best suit their needs.” The latest figures show Lloyds Banking Group remained the largest lender, with an 18.3% market share of gross mortgage lending. Nationwide rose to second, with a 14.8% share of gross lending. Barclays was third with a 12.7% share, HSBC fourth with a 11.5% share, Santander fifth with a 10.2% share, and RBS sixth with a 9.7% share. The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with residential property solicitors in Bath and across the country.