Mortgage News
Santander’s UK mortgage lending up by third in Q1
The UK’s second biggest lender’s results for Q1 show gross mortgage lending increased 34% from £4.2bn in Q1 2011, to £5.6bn in Q1 2012.
Santander’s share of the mortgage lending market nudged up to 17.6% with £5.6bn of lending in the first quarter of 2012, increasing market share by 3.8%.
However, starkly, the lender said that it expects its mortgage stock to “contract over the year” insisting that its financial and risk strategy is focused on enhancing its balance sheet strength and stability.
It said it would do this by tightening risk appetite in the retail mortgage market to originate less business in higher Loan to Value and interest-only mortgages, signalling tighter lending from the bank.
Santander tightened its lending criteria on interest-only mortgages in March this year, capping its maximum LTV at 50%.
Santander said: “Mortgages and savings continued to be a core component of the retail offering, through both direct and intermediary channels.”
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The lender added that payment protection insurance claims continue to be handled effectively, with volumes and settlements “broadly in line with expectations.”
Santander’s UK profit before tax was £347m, down around 40% on Q1 2011 at £590m.