The body revealed the top six firms in its annual list – led by the Lloyds Banking Group (LBG) – accounted for 78% of new loans in 2008, compared to 72% the year before.

LBG retained the top mortgage lender spot in 2008 with a 30.3% share of the market, compared to 28.2% in 2007, despite its gross mortgage lending falling to £78bn from £102.5bn the previous year.

Santander retained its position as the second largest lender, having acquired the Abbey brand and taking over the Alliance & Leicester mortgage book last October, with Nationwide in third place and Barclays in fifth.

Northern Rock’s troubles saw it drop from fourth place to eleventh, with gross mortgage lending of £2.9bn, compared to £29.5bn in 2007.

The CML’s research shows the share of specialist lenders – excluding subsidiaries of UK mortgage banks and building societies shrunk to 2% in 2008 after accounting for over 7% of gross lending in 2007.

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The trade body said the lending community had undergone ‘dramatic changes’ as a result of the credit crunch.

“With so many lenders either merging or ceasing lending, this year’s largest lenders’ table has changed more than in other years.”

Justin Urquhart Stewart, managing director at Seven Investment Management, said the number of mergers and acquisitions had to be taken into account when looking at the composition of the list.

“There will be more consolidation, particularly in the building society sector.”

He continued: “I think we will see some different names next year, with the likes of Bank of China and possibly some other new entrants making an appearance. The market is more mature in terms of risk and could tempt new players to appear on that list.”