Biggest Mortgage Lenders Dominate 81% of the MarketMake Text Bigger
The Big Six mortgage lenders account for 81.5% of all buy to let and home buyer mortgages in the UK, according to figures from the Council of Mortgage Lenders.
The Big Six advanced £110.8 billion in 2010, while the 27 remaining lenders advanced £23.5 billion – an indication of the gulf between the major and minor players in mortgage lending.
For landlords, the figures are slightly skewed as Paragon Mortgages did not restart lending until October 2010, so the company’s results are missing from the figures.
According to trading statements, Paragon lent about £32 million between October 1, 2010 and March 31, 2011, which would not find them a place in the table.
The statistics, put together by the trade body for banks and building societies, represents every significant mortgage lender in the UK.
High street banks take five of the six top spots – with the Nationwide in fifth place representing mutual building societies.
The banks advance little in the way of buy to let funds, while the Nationwide operates landlord lending through subsidiary brand The Mortgage Works, the largest buy to let lender.
Northern Rock, Coventry Building Society, Co-Op Financial Services and the Yorkshire Building Society make up the rest of the top 10. All are buy-to-let lenders, with Coventry offering funds through Godiva Mortgages and the Co-Op via Platform. The Yorkshire has entered the market for the first time in recent weeks in a limited way.
The top six mortgage lenders also take the top six places for lenders with the largest amount of outstanding mortgages – with a total of £899.3 billion.
The largest lender, Lloyds Banking Group, which includes the Halifax, Birmingham Midshires and Bank of Scotland, is owed £341.1 billion – almost as much as the next two lenders added together.
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