This figure represents a 44% increase in lending on the first half of 2013 and the bank estimates it would have a market share of 9.9% based on this figure.
Some £873m of this lending was at 90% LTV or higher, reflecting the bank’s early entry into the Help to Buy mortgage guarantee scheme. This meant the average LTV of new mortgage business has risen sharply from 62.7% to 68.2% in the last six months.
RBS’ overall mortgage portfolio stood at £102bn at the end of June following growth of 2.5% in the previous six months. This portfolio also includes £10bn of residential buy-to-let lending.
The number of mortgage customers more than 90 days in arrears has declined in each of the last 15 months, the bank said this was due to increased investment to help customers in financial difficulty.
As reported in a preliminary statement released last week the group reported a profit before tax of £2.65bn for the first half of the year, up from £1.37bn in H1 2013.
Chief executive Ross McEwan said the bank still had challenges on the horizon: “There is progress on all of our key priorities – capital is stronger, costs are lower and customer activity is gradually improving – although we have only just started with our programme to make it easier for customers to do more business with us.”
“But let me sound a note of caution. We are actively managing down a slate of significant legacy issues. This includes significant conduct and litigation issues that will likely hit our profits going forward. I am pleased we have had two good quarters, but no one should get ahead of themselves here – there are bumps in the road ahead of us.”
“These results are pleasing but no one at this bank is complacent about the challenges ahead.”
