80 Per Cent Of Home Owner Loans Taken With Just Five Lenders
Since the beginning of this year, we have constantly read reports of how the home owner loan and mortgage market is continuing to expand, as more banks and building societies bring new loan products to the market place, thereby offering borrowers far more choice over the loan they take out.
However, a new report has shown that four out of five new home owner loans are being taken out with one of the big five banks in the UK, all of whom appear to be increasing their market share dramatically.
The figures from the Council of Mortgage Lenders (CML), show that 82 per cent of all new home owner loans and mortgages were taken out with just five different lenders over the course of last year.
These figures show that may smaller banks and building societies have been unable to offer competitive home owner loan products compared with many of the big high street giants, some of whom have received financial bail out packages in the form of government loans in order to keep them in business.
Back in 2007, these lenders accounted for just 67 per cent of the home owner loan market and these latest figures show how smaller lenders are being driven out of the loan market during the difficult economic times.
The largest share of loans went to the Lloyds banking group, who accounted for a staggering 28 per cent of home owner loans and almost a quarter of all new purchase loans, worth around £34.7 billion.
Lloyds were followed by the Santander group, Nationwide, Barclays and the Royal Bank of Scotland (RBS). The CML have said that it is likely that this trend will continue in the future as these institutions continue to swallow up smaller lenders and increase their market share even further.
