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Santander mortgage lending leaps to £18.4bn

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  • 30/01/2014
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Santander mortgage lending leaps to £18.4bn
Mortgage lending at Santander rocketed in 2013, despite the bank’s plans to reduce the size of its mortgage book.

The lender’s latest financial statement showed gross mortgage residential mortgage lending of £18.4bn, up £4bn on 2012.

First-time buyers made up £3.4bn of this total.

Santander said it would continue to ‘carefully manage’ higher loan-to-value and interest-only mortgages having tightened criteria on these types of loans in early 2012. The value of the firm’s interest-only mortgages fell £6.4bn year-on-year to £61.1bn.

Across the year net mortgage lending fell £8.5bn in total but the bank said it expected the mortgage market as a whole to grow in the coming year and anticipated an increase in net mortgage loans during 2014.

However a more buoyant market will likely see a reduction in the number of borrowers on its Standard Variable Rate (SVR), it added.

Ana Botin, chief executive officer, said: “Our goal is to transform Santander UK into a bank which is simple, personal and fair for our customers and our other stakeholders. We provided £18.4bn of mortgages to UK households, including £3.4bn to first-time buyers.

“The UK economic recovery is strengthening, although uncertainties remain in the banking environment for the year ahead. 

“We will continue to support our customers and the broader economy: our intention is to grow both our commercial and retail lending in 2014. We remain confident that we will deliver on our key commitments for the end of 2015.”

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