Halifax (now HBOS) is often quoted as being Britain’s mortgage lender. What’s the score? By how much is it number one spot?
According to figures from the Council of Mortgage Lenders, in 2006 HBOS had a gross lending amount of £73.2bn, which is an estimated market share of 21.2% - undoubtedly the market leader. This was up from lending in 2005 which was £60.5bn.
In second place in the lending table is Abbey. In 2006 it lent a gross amount of £32.6bn, which is an estimated market share of 9.4%. It is easy to see how HBOS is way out in front. Abbey’s market share was slightly down on its 2005 level of 10%.
Northern Rock has overtaken Lloyds TSB to take number three spot in the 2006 table. With gross lending of £29bn, up from the 2005 figure of £23.6bn, it has a market share of 8.4%.
Lloyds TSB fell behind Northern Rock, with gross lending of £27.6bn in 2006. Although that figure was up by £1.6bn and its market share was unchanged, Northern Rock has raced ahead with an increase in lending of £5.4bn on the previous year.
Nationwide is in fifth place for 2006, with gross lending at £21.1bn and a market share of 6.1%, which is a fall of 1.9% on 2005, and down from £22.5bn lending that year.
Lloyds TSB said that they had operated in the higher quality standard mortgage market in 2006, and by avoiding non-standard lending their share of the overall market was lower than their stock position. They said that the outlook for 2007 was good with broad-based distribution channels and growing sales via their branch networks.
Northern Rock were delighted to have moved up to third position, reflecting, they said, their continued growth as a result of competitive mortgages, backed by good service.
In the first half of 2007, HBOS revealed that its market share had slipped as low as 8%, although a return to 21% is predicted by year-end.
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