The UK’s six largest lenders increased their gross loan market share from 67.6% to 70.6% between 2018 and 2019, according to figures from UK Finance.
The largest lender in 2019 was Lloyds Banking Group, with 17.2% of the market, Nationwide, 12.6%, NatWest Group, with 12.5% of the market, Santander UK at 11.5%, Barclays at 9.3 %, and HSBC, at 7.5 percent.
Overall, gross lending in 2019 was £ 268 billion, down 0.3% from 2018.
In terms of the value of outstanding mortgages, the ranking in 2019 reads: Lloyds Banking Group at £ 286.4bn, Nationwide at £ 189.8bn, Santander UK at £ 165bn, NatWest Group at £ 147.5 billion, Barclays at £ 142.7 billion and HSBC at £ 96.7 billion.
In the rental market, gross loans in 2019 reached £ 42.2 billion, an increase of 4.2% compared to 2018.
Here, the ranking of the largest lenders was a little more fluid, with first and second places of exchange: Nationwide went from second place in 2018 to first place in 2019, taking 15.6% market share and Lloyds Banking Group fell to second place with an 11.9% market share. percent BTL market share in 2019.
Barclays remained in third place, with 9.8% market share, followed by OneSavings Bank which also retained its fourth place, with 9.2% market share.
Coventry Building Society was fifth, with 6.6% of the market, Santander in sixth place, with 5.9% market share, and NatWest Group was seventh in 2019.
This lender took 4.9% of the market and, in doing so, moved from the ninth position it occupied in 2018.
Lloyds Banking Group had £ 48.6 billion in BTL mortgages in 2019, Nationwide £ 34.7 billion, Barclays £ 19.4 billion, Coventry Building Society £ 16.7 billion, Virgin Money had £ 14.3bn outstanding, OneSavings Bank £ 12.4bn and NatWest Group £ 12.3bn. .
In a blog post, UK financial analyst, data and research Callum Bilbe writes: “One possible explanation for this growth at the big banks could be a drop in lending from direct competitors, coinciding with the introduction from cantonment to start. from 2019.
“In summary, the silo meant that at the start of 2019 the biggest UK banks were required to separate their main UK retail bank from the rest of their banking activities (such as investing).
“Because UK retail banking is ring-fenced, that means there are only certain things banks can do with borrowers’ deposit money. As deposit levels are on average higher than loan levels, these large lenders used excess retail deposits in the ring-fenced organization to increase mortgage lending.
“This increase in the supply of mortgages has contributed to the significant drop in the average price of new mortgages, as the largest mortgage companies and mid-level lenders compete with the largest banks to attract borrowers to their homes. products.
“In addition, large lenders can take advantage of the internal ratings-based approach (of capital weighting (as opposed to the standardized approach followed by small businesses).
He adds that the manual underwriting demanded by many borrowers has ways that specialist lenders are always in demand. He says: “Overall, despite this increase in market share from the largest banks, the mortgage market has remained competitive with a variety of different types of lenders catering to all borrower needs.