Trio 'dominate' mortgage market
Nearly two-thirds of all mortgages were advanced by just three lenders in 2009 as competition continued to be constrained by the credit crunch, figures have shown.Lloyds Banking Group, in which the Government holds a 41% stake, was the biggest lender during the year, following its merger with HBOS at the beginning of 2009.
The combined group advanced £34.7bn in 2009, giving it a 24.1% market share, according to the Council of Mortgage Lenders (CML).
It was followed by Spanish banking giant Santander, which lent £26.4bn, accounting for 18.4% of the market.
Nationwide was the third biggest lender, and one of only two building societies to make it into the top 10, with a market share of 17.8% after advancing £25.5bn.
Part-nationalised Royal Bank of Scotland was in fourth place with a 12.3% market share, followed by Barclays at 9.9% and HSBC at 9.7%.
Northern Rock, Coventry Building Society, Co-operative Financial Services and Clydesdale and Yorkshire Banks completed the top 10.
Overall, the five largest lenders accounted for 82% of all advances during 2009, up from 64% two years earlier. All of the lenders outside of the top 10 had a market share of less than 1%.
The CML said: "In 2009 firms were operating in a rationed market, with much lending activity driven by a small number of large banks, some of which were wholly or partly state-owned.
"Building societies, with a few notable exceptions, were largely hibernating, and non-banks were often comatose - unable to write new business without access to new sources of retail funding. These conditions continue to afflict the mortgage market today and will not change soon."
Part-nationalised Royal Bank of Scotland was in fourth place with a 12.3% market share, followed by Barclays at 9.9% and HSBC at 9.7%.
Northern Rock, Coventry Building Society, Co-operative Financial Services and Clydesdale and Yorkshire Banks completed the top 10.
Overall, the five largest lenders accounted for 82% of all advances during 2009, up from 64% two years earlier. All of the lenders outside of the top 10 had a market share of less than 1%.
The CML said: "In 2009 firms were operating in a rationed market, with much lending activity driven by a small number of large banks, some of which were wholly or partly state-owned.
"Building societies, with a few notable exceptions, were largely hibernating, and non-banks were often comatose - unable to write new business without access to new sources of retail funding. These conditions continue to afflict the mortgage market today and will not change soon."
© 2012 Press Association